Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Yantai Changyu Pioneer Wine Co., Ltd.
2022 Semi-annual Report
Final 2022-03
August 26, 2022
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Table of Contents
I、Important Notice, Table of Contents and Definition .................................................................3
II、Brief Introduction for the Company and Main Financial Indicators ..................................6
III、Discussion and Analysis of Management Team .................................................................... 9
IV、Corporate Governance ..........................................................................................................26
V、Environmental and Social Responsibility ............................................................................. 28
VI、Major issues ........................................................................................................................... 30
VII、Changes in Shares and the Shareholders’ Situation ......................................................... 38
VIII、Related Situation of Preferred Shares ................................................................................ 43
IX、Related Situation of Bonds ..................................................................................................... 43
X、Financial Report ......................................................................................................................44
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
I. Important Notice, Table of Contents and Definition
The board of directors，the board of supervisors，directors, supervisors and senior executives
of the Company guarantee the truthfulness, accuracy and completeness of the contents
contained in the semi-annual report with no false records, misleading statements or
significant omissions, and undertake individual and joint legal liabilities.
Mr. Hongjiang ZHOU (Person in charge of the Company), Mr. Jianxun JIANG (Person in
charge of accounting work) and Ms. Cuimei GUO (Person in charge of accounting organ &
Accountant in charge) assure the truthfulness, accuracy and completeness of the financial
report in the semi-annual report.
All directors have attended the meeting for deliberating the semi-annual report.
Forward-looking statements such as future plans and development strategies covered in this
report do not constitute a substantial commitment of the Company to investors. Investors are
advised to pay attention to investment risks.
Regarding significant risks that the Company may face during the business process, please
refer to “10. Risks and response measures” in “III Discussion and Analysis of Management
Team” in this report. Investors are suggested to read carefully and pay attention to investment
risks.
The Company has no plan to distribute cash dividends and bonus shares and capital reserve
will not be transferred to equity.
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Reference Documents
(1) The original of 2022 Semi-annual Report autographed by the chairman.
(2) The Financial Statements autographed and sealed by the chairman, chief accountant and
accountants in charge.
(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectus
and The Shares’ Change & Public Offering Announcement for Stock A in 2000.
(4) The originals of all documents and announcements that the Company made public during
the report period in the newspapers designated by China Securities Regulatory Commission.
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co., Ltd.
Changyu Group/Controlling Shareholder Refers to Yantai Changyu Group Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
KPMG Huazhen Refers to KPMG Huazhen LLP (Limited Liability Partnership)
CNY Refers to Chinese Yuan
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
II. Brief Introduction for the Company and Main Financial Indicators
1. Company’s information
Stock Abbreviation Changyu A, Changyu B Stock Code 000869，200869
Stock Abbreviation after Alteration None
Place of Stock Listing Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese Name 张裕
Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
Abbreviation of English Name CHANGYU
Legal Representative Hongjiang ZHOU
2. Contact person and information
Secretary to the Board of Directors Authorized Representative of Securities Affairs
Name Jianxun JIANG Tingguo LI
Address 56 Dama Road, Yantai, Shandong, China 56 Dama Road, Yantai, Shandong, China
Tel. 0086-535-6602761 0086-535-6633656
Fax. 0086-535-6633639 0086-535-6633639
E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn
3. Other information
1) Contact information of the Company
Whether there is any change in the Company’s registered address, office address,
corresponding postcode, website address and email address during the report period
Available Not available
There is no change in the Company’s registered address, office address, corresponding
postcode, website address and email address during the report period. Please refer to 2021
Annual Report for detailed information.
2) Information disclosure and filing location
Whether there is any change in information disclosure and filing location during the report
period
Available Not available
There is no change in the name of the newspaper for information disclosure, the address of
the website designated by the China Securities Regulatory Commission for publishing the
semi-annual report, and the filing location of the Company’s semi-annual report selected by
the Company during the report period. Please refer to 2021 Annual Report for detailed
information.
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
3) Other relevant information
Whether there is any change in other relevant information during the report period
Available Not available
4. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of
previous fiscal years.
Yes No
During the report In the same period More or less than the same
period of last year period of last year (%)
Operating revenue (CNY) 1,953,092,135 1,874,460,437 4.19%
Net profit attributed to shareholders of the listed
358,459,603 371,821,819 -3.59%
company (CNY)
Net profit attributed to shareholders of the listed
company after deducting non-recurring profits 344,309,022 353,676,042 -2.65%
and losses (CNY)
Net cash flows from operating activities (CNY) 606,273,595 455,935,149 32.97%
Basic earnings per share (CNY/share) 0.52 0.54 -3.70%
Diluted earnings per share (CNY/share) 0.52 0.54 -3.70%
Weighted average return on equity (CNY) 3.37% 3.57% -0.20%
At end of this At the end of last More or less than the end of
report period year last year (%)
Total assets (CNY) 13,284,166,296 13,472,009,754 -1.39%
Net Assets attributed to shareholders of the
10,491,487,490 10,447,884,183 0.42%
listed company (CNY)
5. Differences in accounting data under PRC accounting standards and international
accounting standards
1) Differences of net profit and net asset in the financial report disclosed according to
both international accounting standards and PRC accounting standard
Available Not available
Unit：CNY
Net profit attributed to the Net Assets attributed to the
shareholders of the listed company shareholders of the listed company
Current period Last period End of period Beginning of period
According to PRC accounting
358,459,603 371,821,819 10,491,487,490 10,447,884,183
standards
Item and amount adjusted according to international accounting standards
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
According to international
358,459,603 371,821,819 10,491,487,490 10,447,884,183
accounting standards
2) Differences of net profit and net asset in the financial report disclosed according to
both foreign accounting standards and PRC accounting standards
Available Not available
There are no differences of net profit and net asset in the financial report disclosed according
to both foreign accounting standards and PRC accounting standards during the report period.
3) Explanation of the differences in accounting data under domestic and foreign
accounting standards
Available Not available
6. Item and amount of non-recurring gains and losses
Available Not available
Unit：CNY
Item Amount Explanation
Profits and losses on disposal of non-current assets (including the write-off part of the
-8,239,072
provision for asset impairment has been made)
Government grants included in the current profits and losses(except for those recurring
government grants that are closely related to the entity’s operation, in line with related 23,129,245
regulations and have proper basis of calculation)
Other non-operating income and expenditure besides above-mentioned items 1,105,081
Less: Amount affected by income tax 4,584,591
Amount affected by minority equity (after tax) -2,739,918
Total 14,150,581
Specific situation of other profit and loss projects conforming to the definition of
non-recurring profit and loss
□Available Not available
There does not exist specific situation of other profit and loss projects conforming to the
definition of non-recurring profit and loss.
Explanation for regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
□Available Not available
There is no situation regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
III. Discussion and Analysis of Management Team
1. Main businesses during the report period
1) Basic information of main business during the report period
During the report period, the Company’s main businesses are production and operation of
wine and brandy, thus providing domestic and foreign consumers with healthy and
fashionable alcoholic drinks. Compared with earlier stage, there are no significant changes
happened to the Company’s main businesses. The wine industry that the Company involved
in is still in growth stage. Although being affected by many factors for the short-term, the
competition in the market is fierce and the demand in wine consumption is still weak.
However, seen from the long term, the whole domestic wine market is on the rising trend.
The Company is at the forefront in the domestic wine market.
2) License obtained
As of June 30th, 2022, the Company and its subsidiaries have obtained 10 food production
licenses (alcohol), of which the food production licenses having been obtained since the
beginning of 2021 are as follows:
Producer name Food category Obtaining time Obtaining method Food production license number
Yantai Chateau Koya Brandy Approval from
Alcohol 2021.04.02 SC11537063601165
Co., Ltd. government authority
Yantai Changyu Pioneer Approval from
Alcohol 2021.06.01 SC11537060100050
Wine Co., Ltd. government authority
Yantai Chateau Approval from
Alcohol 2021.06.08 SC11537063600172
Changyu-Castel Co., Ltd. government authority
Chateau Changyu Icewine Approval from
Alcohol 2021.03.25 SC11521052200370
Co., Ltd. Liaoning government authority
3) Explanation for other significant events
During the report period, there did not exist the trademark ownership dispute, food quality
issue or food safety incident etc. that had a significant impact on the Company.
Brand operation
The Company’s products were divided into two series: wine and brandy. For wine, main
brands included Changyu, Noble Dragon, AFIP, Changyu Moser XV, Longyu, Golden
Icewine Valley, Zenithwirl, Vermouth, Rena, Baron Balboa, J.LORMIN, Atrio, Kilikanoon
and IWCC and so on. For Brandy, main brands included Koya, Mminni, Pagese, Roullet
Fransac and so on.
Major sales mode
The Company’s main sales mode was the distribution mode, and main sales channel was
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
offline sales, that is, the Company’s products were distributed to sales terminals through
approximately 4600 distributors at home and abroad and ultimately provided to consumers.
Distribution mode
Available Not available
① The Company adopted the settlement method of cash and carry with the distributors, and
mainly adopted buyout distribution mode. Situation of change in the number of distributors is
shown as follows.
Number at the end Increased number during Number on June
Region
of 2021 this report period 30th, 2022
Eastern China 1857 20 1877
South China 565 4 569
Central China 476 -18 458
North China 365 -1 364
Northwest China 184 -12 172
Southwest China 493 5 498
Northeast China 318 -1 317
HongKong, Macao,Taiwan China and overseas 573 18 591
Total 4831 15 4846
② Sales information of the Company’s top 5 distributors during the report period
No. Customer name Sales amount (CNY） Proportion in total sales（%）
1 Rank 1st 35,061,506 1.80%
2 Rank 2nd 24,698,618 1.26%
3 Rank 3rd 22,310,450 1.14%
4 Rank 4th 14,031,860 0.72%
5 Rank 5th 13,530,153 0.69%
Total -- 109,632,587 5.61%
The ratio of sales in self-owned exclusive shop exceeds 10%
Available Not available
Sales of online direct sales
Available Not available
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
First half of 2022 First half of 2021
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 1,719,362,579 721,760,539 58.02% 1,641,730,422 666,704,868 59.39%
Direct sales 233,729,556 100,094,927 57.17% 232,730,015 94,808,676 59.26%
Total 1,953,092,135 821,855,466 57.92% 1,874,460,437 761,513,544 59.37%
The change in sales prices of major products accounting for more than 10% of total operating
income in current report period exceeds 30% compared with those in last report period
Available Not available
Procurement mode and procurement content
Unit: CNY’0000
Amount of major
Procurement mode Procurement content
procurement contents
Qualitative and price comparison Raw materials including grape/bulk wine 25,743.36
Invitation for bids / qualitative and price comparison Packaging materials 18,474.16
Invitation for bids / qualitative and price comparison Brewing materials 618.61
Invitation for bids / qualitative and price comparison Goods and materials for vineyard 209.67
Contract Fuel and power 1,251.54
Qualitative and price comparison Other alcoholic products and derivatives 1,001.56
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total
procedure amount
Available Not available
The year-on-year change in the price of major outsourced raw materials exceeds 30%
Available Not available
Major production mode
The production mode of the Company is self-produce.
Commissioned processing and production
Available Not available
Major components of operating costs
Unit: CNY
First half of 2022 First half of 2021 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Liquor Blending liquor 373,837,363 46.27% 338,779,444 45.80% 0.47%
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
and Packing material 240,932,715 29.82% 220,802,800 29.85% -0.03%
alcoholic
Wages 26,180,979 3.24% 22,817,933 3.08% 0.16%
beverage
Manufacturing
/transporting 167,043,018 20.67% 157,299,021 21.27% -0.59%
expenses
Unit: CNY
First half of 2022 First half of 2021 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 267,277,422 45.81% 242,011,692 45.36% 0.45%
Packing material 165,812,423 28.42% 155,025,713 29.06% -0.64%
Wine Wages 22,169,970 3.80% 18,985,077 3.56% 0.24%
Manufacturing
128,178,818 21.97% 117,508,189 22.02% -0.06%
expenses
Blending liquor 106,559,941 47.45% 96,767,752 46.94% 0.52%
Packing material 75,120,293 33.45% 65,777,088 31.90% 1.55%
Brandy Wages 4,011,009 1.79% 3,832,855 1.86% -0.07%
Manufacturing
38,864,200 17.31% 39,790,832 19.30% -1.99%
expenses
Yield and inventory
Year Category Yield (ton) Sales volume (ton) Inventory (ton)
Wine 30,563 32,315 13,645
First half of 2022
Brandy 5,661 13,198 6,927
Wine 28,229 31,428 13,697
First half of 2021
Brandy 8,449 14,191 5,962
2. Analysis of core competitiveness
In the competitive landscape of China’s wine industry, the Company has the following
competitive advantages over the players in the industry:
Firstly, the Company has a large brand influence. Main brands used have a long history.
“Changyu”, “Noble Dragon” and “AFIP” are all “China famous brands” that have strong
influence and good reputation.
Secondly, the Company has set up a nationwide marketing network. The Company has
formed a “three-level” marketing network system mainly composed of the Company’s
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
salesmen and distributors and the online sales platform has had a certain scale and influence,
owing strong marketing ability and market exploitation ability.
Thirdly, the Company has strong scientific prowess and a product R&D system. Relying on
the country’s “State-level Wine R&D Center”, the Company has owned powerful winemaker
team, mastered advanced winemaking technology and production processes and had strong
product innovation capacity and perfect quality control system.
Fourthly, the Company is in possession of a lot of grape-growing bases that are compatible
with its development requirements. The Company has developed a great deal of vineyards in
the most suitable areas for wine grape growing in China such as Shandong, Ningxia, Xinjiang,
Liaoning, Hebei and Shaanxi, and its subsidiary overseas enterprises also own matching
grape bases in local area, making the overall scale and structure generally meet the
Company’s needs for future development.
Fifthly, products in high, medium and low-grade as well as varieties and categories are all
complete. Over 100 varieties of series products such as wine, brandy and sparkling wine
covers various grades, including high, medium and low-grade, which can meet different
consumer group’ demands. The Company has taken the dominant status in the domestic wine
industry after many years’ development and has comparative advantages in the future
competition.
Sixthly, the Company has a relatively perfect motivation system. Most of Company’s
employees indirectly hold the Company’s equity through controlling shareholders. There are
high consistency between employee benefits and shareholders benefits, in favor of motivating
employees to create value for shareholders.
Seventhly, the Company has set up flexible and efficient decision-making mechanism. The
Company’s core management team always maintains a working style of unity and pragmatic
and flexible and efficient decision-making mechanism, which makes the Company can deal
with market changes more calmly.
Eighthly, the global production capacity layout has been basically completed. The Company
has completed production capacity layout in China, France, Chile, Spain, Australia and other
major wine producing countries in the world, enabling making better use of global
high-quality raw material resources, capital, talents and advanced production processes and
technologies to provide consumers with diversified quality products and better serve
consumers.
Based on the above reasons, the Company has formed relatively strong core competence and
will maintain a relatively dominant position in the future predictable market competition.
3. Analysis in main business
Summarization
During the report period, affected by various factors such as COVID-19 epidemic, the
domestic wine demand still weak, the market competition was very fierce, and the marketing
activities were severely restricted. The Company insisted in taking the market as the center,
insisted the development strategy of “Focus on high quality, Focus on middle-and-high level,
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Focus on big product” and the marketing concept of “Increasing sales from the terminal and
continuously-cultivated consumers” without wavering, and actively explored and created a
new development pattern for wine and brandy in China. In the first half year, the Company
realized the business income of CNY1953.09million with a year-on-year increase of 4.19%
and the net profit attributable to shareholders of the parent company realized
CNY358.45million with a year-on-year decrease of 3.59%. During the report period, the
Company mainly did following work:
Firstly, the reform of the market system has been advanced both in scope and in depth, and
the significant progress has been made in the comprehensive digital transformation. During
the report period, the Longyu business division, Chateau Wine business division, Noble
Dragon business division, Brandy business division, Imported Wine business division, Online
business division and Tourism business division established by the Company have basically
taken shape. People, funds and materials have been basically configured in place, and a
corresponding compensation assessment and responsibility system have been formulated. The
business divisions adjusted and optimized the distribution of distributors, established a sales
structure, which is both independent and coordinated, covering all business segments, all
items and different consumer groups, and established marketing strategies with their own
characteristics, in order to provide organizational guarantee for further refinement and
deepening of the market;enable consumer data assets to empower customer experience,
products, marketing, dealers and business, and comprehensive improve the digital execution
level of all employees and the digital operation team.
Secondly, continue to promote marketing innovation, strive to expand new marketing
channels, and promote product sales. During the reporting period, the Company continued to
deepen cooperation with e-commerce platforms such as JD.com and Tmall, increased
investment in self-operated e-commerce business resources and talent introduction, and
launched a large number of high-quality short videos on platforms such as Kuaishou and
TikTok (Chinese version), which achieved good communication effects that boosted product
sales and achieved a significant increase in online sales amount. Actively expand emerging
sales channels such as “circle marketing”, give full play to the leading role of consumer
leaders, and continuously expand the consumer group of high-end products.
Thirdly, continue to strengthen quality management, and steadily improved the product
quality. The Company further strengthened the brand winemaker system, promoted the
production unit to assume the main responsibility for external packaging quality and the
supplier roles of A and B, so as to steadily improve product quality. The Company
participated in the 2022 Berlin Wine Competition, in which 10 products including Longyu
M12 Cabernet Sauvignon dry red wine, Longyu M8 blended dry red wine, Changyu Noble
Dragon N398 dry red wine, Changyu Riesling N118 dry white wine, Chateau Tinlot dry red
wine, Xingjiang Chateau Baron Balboa dry red wine, Shanxi Chateau Rena R388 Shiraz dry
red wine and R588 Shiraz dry red wine, Liaoning Golden Icewine Valley Golden Diamond
and Black Diamond Icewine won gold award. The Company participated in the The Thirtieth
Session Mundus Vini World Wine Competition, in which Longyu 2021 M6 Cabernet
Sauvignon dry white wine, Xingjiang Chateau Baron Balboa 2019 Chardonnay dry white
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
wine, Liaoning Golden Icewine Valley 2019 Golden Diamond Icewine and 2019 Black
Diamond Icewine respectively won the gold awards.
Fourthly, accelerate technological and product innovation, research and develop special
varieties, and promote the institutional reform of production units to better meet market
demand, reduce production costs and improve production efficiency.
Fifthly, complete the teasing out of domestic grape bases, introduce and absorb advanced
planting technology, and further improve the management level of grape bases, which is
conductive to improving grape products and quality and optimizing the variety structure.
Sixthly, intensify the crackdown on cross-regional price reduction of products, strengthen
financial management and audit supervision, maintain the good market order, and prevent
operational risk. During the reporting period, the Company intensified the punishment for
cross-regional price reduction of products, which better maintained the market order;
strengthened financial budget management, and in-depth analysis and evaluate tax-related
risk matters to avoided major financial and tax risks; audit the key expenses of the production
and sales system, the 2021 profit authenticity and the integrity and effectiveness of assets of
17 business units; complete the outgoing audit of 35 unit managers in sales and tourism
system; complete special audits such as non-performing assets and economic responsibility
investigation to effectively prevent and control business risks.
The Company has actively taken the above measures to promote product sales; however, in
the first half of this year, the COVID-19 epidemic occurred frequently across the country,
which led to the restrictions on catering, on-site meetings, entertainment and other gathering
activities for people in the affected areas. The wine consumption scene was greatly reduced,
and a large number of marketing activities were difficult to carry out normally, especially the
Yangtze River Delta region, which is an important sales area for the Company, has been
affected by the epidemic for a long time. The flow of people and logistics have been blocked
resulted in the inability of products to be delivered to customers and consumers in time,
which dragged down the Company’s overall sales performance.
In order to achieve the Company’s business target set at the beginning of the year, in the
second half of 2022, the Company will focus on following tasks:
The first is to further improve the market system with seven major business divisions as the
main body, deepen the reform of the production system, and enhance the ability of enterprise
to adapt to market changes.
The second is to strengthen the construction of talent team, increase talent introduction and
recruitment, establish and improve the management trainee system, form a scientific and
reasonable talent echelon, and continuously inject new impetus into the Company’s
development.
The third is to take the opportunity of the Company’s 130th anniversary of the establishment,
do a good job of the celebration, increase the promotion of Changyu brand, improve brand
awareness and reputation, and promote product sales.
The fourth is to do a good job in field management before grape harvesting, and strive to
improve the quality of grapes; scientifically organize the harvesting of grapes and other raw
materials, complete the task of grape harvesting with quality and quantity, and provide
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
reliable raw material guarantee for the future development of the Company.
The fifth is to continue to strengthen safety production management, check and eliminate
safety hazards one by one, ensure that safety responsibilities and various safety management
measures are fully implemented, and prevent major production and operation accidents and
risks.
Year-on-year change in key financial data
Unit: CNY
The same period Year-on-year
This period Cause of significant changes
of last year increase or decrease
Mainly due to increase in the average price
Operating revenue 1,953,092,135 1,874,460,437 4.19%
of products.
Mainly due to the increase in the price of raw
Operating cost 821,855,466 761,513,544 7.92%
materials and packaging materials
Mainly due to the increase in marketing
Sales expense 417,764,419 388,385,610 7.56%
expense
Mainly due to the increase in administrative
Management expense 127,504,270 123,384,629 3.34%
expenses and depreciation expenses
Mainly due to the decrease in interest
Financial expense 6,085,438 9,363,032 -35.01%
expenses and the increase in interest income
Income tax expense 128,189,749 136,579,849 -6.14%No significant changes
Mainly due to the increase in new product
R&D expense 5,509,656.00 2,477,835 122.36%
and new process research
Net amount of cash flow Mainly due to the increase in cash received
generated in operating 606,273,595 455,935,149 32.97% from sales of goods, provision of labor
activities services and cash received from tax refunds
Net amount of cash flow Mainly due to the increase in net cash
generated in investment -82,230,822 -113,095,884 27.29% recovered from disposal of fixed assets,
activities intangible assets and other long-term assets
Net amount of cash flow
Mainly due to the decrease in cash received
generated in capital-raising -186,701,705 -2,719,043 -6,766.45%
from borrowings
activities
Net increased amount of
337,529,905 339,719,689 -0.64%No significant changes
cash and cash equivalents
Significant change in the profit form and profit source of the Company during the report
period
There is no significant change in the profit form and profit source of the Company during the
report period.
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Composition of operating revenue
Unit: CNY
This report period The same period of last year Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating revenue operating revenue decrease (%)
Total operating revenue 1,953,092,135 100% 1,874,460,437 100% 4.19%
Sector-classified
Sector of liquor and
1,953,092,135 100% 1,874,460,437 100% 4.19%
alcoholic beverage
Product-classified
Wine 1,396,641,243 71.51% 1,307,676,111 70.92% 6.80%
Brandy 512,003,369 26.22% 501,728,940 26.61% 2.05%
Tourism 29,847,803 1.53% 52,119,124 1.59% -42.73%
Others 14,599,720 0.75% 12,936,262 0.89% 12.86%
Area-classified
Domestic 1,660,239,304 85.01% 1,627,153,708 84.45% 2.03%
Overseas 292,852,831 14.99% 247,306,729 15.55% 18.42%
The cases of industry, product or area accounting for over 10% in the Company’s operating
revenue or operating profit
Available Not available
Unit: CNY
Year-on-year Year-on-year Year-on-year
Operating Operating Gross increase or increase or increase or
revenue cost margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross margin
Sector-classified
Sector of liquor and
1,953,092,135 821,855,466 57.92% 4.19% 7.92% -1.45%
alcoholic beverage
Product-classified
Wine 1,396,641,243 583,438,632 58.23% 6.80% 9.35% -0.97%
Brandy 512,003,369 224,555,443 56.14% 2.05% 8.92% -2.77%
Tourism 29,847,803 9,709,207 67.47% -42.73% -42.86% 0.07%
Others 14,599,720 4,152,183 71.56% 12.86% -13.92% 8.85%
Area-classified
Domestic 1,660,239,304 615,799,260 62.91% 2.03% 1.36% 0.25%
17
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Abroad 292,852,831 206,056,206 29.64% 18.42% 33.84% -8.11%
Under the condition that the statistical caliber of the Company’s main business data is
adjusted during the report period, the Company’s main business data adjusted on the basis of
caliber at the end of report period in recent one year.
Available Not available
Explanation on the causes of over 30% year-on-year changes of the related comparison data
Available Not available
4. Analysis in non-main business
Available Not available
5. Analysis in assets and liabilities
1) Significant change in assets composition
Unit: CNY
At the end of this report period At the end of last year Proportion
Explanation
Proportion in Proportion in increase or
on significant
Amount the total assets Amount the total assets decrease
changes
(%) (%) (%)
No significant
Monetary funds 1,904,942,625 14.34% 1,567,095,993 11.63% 2.71%
changes
No significant
Account receivables 217,886,837 1.64% 291,006,410 2.16% -0.52%
changes
Contract assets 0% 0% -
No significant
Inventory 2,833,824,908 21.33% 2,802,622,520 20.80% 0.53%
changes
No significant
Investment real estate 23,031,335 0.17% 24,502,258 0.18% -0.01%
changes
No significant
Long-term equity investments 45,575,193 0.34% 46,496,510 0.35% -0.01%
changes
No significant
Fixed assets 5,546,334,638 41.75% 5,687,867,314 42.22% -0.47%
changes
No significant
Construction in progress 660,727,258 4.97% 590,172,099 4.38% 0.59%
changes
No significant
Right-of-use asset 149,020,444 1.12% 134,569,039 1% 0.12%
changes
No significant
Short-term borrowings 488,464,425 3.68% 622,066,457 4.62% -0.94%
changes
No significant
Contract liability 141,073,446 1.06% 147,120,716 1.09% -0.03%
changes
No significant
Long-term borrowings 132,856,562 1% 176,047,043 1.31% -0.31%
changes
No significant
Lease liability 111,496,142 0.84% 101,811,588 0.76% 0.08%
changes
18
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
2) Main overseas assets situation
Available Not available
Unit：CNY
Formation Operation Control measures for safeguarding of Earning Proportion of overseas assets Whether there are
Details of assets Assets scale Location
reasons mode asset security condition in the Company’s net assets significant impairment risks
The Company participates in making
Hacienda Y Vinedos Acquisition of Independent
529,203,276 Spain important decisions through board of directors 7,091,623 5.04% No
Marques Del Atrio. SL equity operation
and appoints CFO on financial management.
Indomita Wine Establishment Independent The Company participates in making
523,412,313 Chile 4,315,754 4.99% No
Company Chile, S.p.A. of joint venture operation important decisions through board of directors.
Kilikanoon Estate Pty., Acquisition of Independent The Company participates in making
158,839,501 Australia -316,838 1.51% No
Ltd. equity operation important decisions through board of directors.
Sole
Francs Champs Independent The Company participates in making
proprietorship 220,100,542 France -665,481 2.10% No
Participations SAS operation important decisions through board of directors.
establishment
Other information explanation None
3) Assets and liabilities measured at fair value
Available Not available
4) Limitations of assets rights up to the end of the report period
①At the end of report period, the Company has no assets sealed up, detained or frozen.
②For information about assets mortgage and pledge, please refer to Announcement on External Guarantee and Announcement on Guarantee provided
by Spanish Atrio Company for Bank Loan disclosed on China Securities Journal, Securities Times and CNINFO (http://www.cninfo.com.cn) in 2016,
2017, 2018, 2019 and 2020.
③For the types and amounts of mortgaged and pledged assets, please refer to “7.55 Assets with ownership or use right restrictions” in “7. Notes to
19
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
items in the consolidated financial statements” in the note to the financial statements of this report.
6. Analysis in investment condition
1) Overall situation
Available Not available
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
46,420,000 80,000,000 -41.98%
2) Cases of acquired significant equity investments during the report period
Available Not available
3) Cases of significant ongoing non-equity investments during the report period
Available Not available
Unit: CNY
Accumulated Accumulated
Whether Reasons for
Involved Investment actual realized
belongs to unreached
Investment sectors of amount during investment Capital Project Estimated earnings up Disclosure
Project name fixed planning schedule Disclosure index (if have)
mode investment the report amount up to the source progress earnings to the end of date
assets and estimated
projects period end of the report the report
investment earnings
period period
Yantai Changyu Please refer to Resolution
Liquor and
International Announcement of Seventh
Self-constr alcoholic Owned
Wine City Yes 10,190,000 1,695,214,100 100% 0 0 — 2017.04.22 Session Board of
ucted beverage fund
Blending and Directors 4th Meeting,
sector
Cooling Center Resolution Announcement
20
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
of Seventh Session Board
Yantai Changyu
of Directors 8th Meeting,
International Self-constr Owned
Yes 0 1,090,110,000 100% 0 0 — 2017.04.22 Resolution Announcement
Wine City ucted fund
of Seventh Session Board
Bottling Center
of Directors 10th Meeting,
Resolution Announcement
Yantai Changyu
of Eighth Session Board
International
Self-constr Owned of Directors 4th Meeting,
Wine City Yes 0 462,677,200 100% 0 0 — 2017.04.22
ucted fund Resolution Announcement
Logistics
of Eighth Session Board
Center
of Directors 7th Meeting
Changyu
and Resolution
Vineand Wine Self-constr Owned
Yes 0 179,854,800 100% 0 0 — 2017.04.22 Announcement of Eighth
Research ucted fund
Session Board of
Institute
Directors 11th Meeting
Treasure Wine Self-constr Owned disclosed on China
Yes 50,000 211,370,000 95% 0 0 — 2017.04.22
Chateau ucted fund Securities Journal,
Koya Brandy Self-constr Owned Securities Times and
Yes 480,000 207,575,500 100% 0 0 — 2017.04.22 CNINFO
Chateau ucted fund
(http://www.cninfo.com.c
Oak barrel
Self-constr Owned n)
procurement Yes 0 148,084,200 70% 0 0 — 2021.04.28
ucted fund
project
Changyu Wine
Culture
Self-constr Owned
Museum Yes Tourism 35,700,000 35,700,000 60% 0 0 — 2022.04.27
ucted fund
intelligent
upgrade and
21
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
reconstruction
project
Total -- -- -- 46,420,000 4,030,585,800 -- -- 0 0 -- -- --
4) Financial assets investment
① Security investment situation
Available Not available
There are no security investments for the Company during the report period.
② Derivatives investment
Available Not available
There are no derivatives investments for the Company during the report period.
5) The usage situation of raised capital
□Available Not available
There are no usage situations of raised capital for the Company during the report period.
22
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
7. Sale of significant assets and equities
1) Sale of significant assets
Available Not available
The Company did not sell significant assets during the report period.
2) Sale of significant equities
Available Not available
8. Analysis of main holding and joint stock companies
Available Not available
Situation of main subsidiaries and joint stock companies affecting over 10% of the Company’s
net profit
Unit: CNY
Company Main Registered Operating Operating
Company name Total assets Net assets Net profit
type business capital revenue profit
Yantai Changyu Sales of
Pioneer Wine Sales Subsidiary alcoholic CNY8million 761,104,139 94,472,441 1,112,462,616 288,211,876 236,193,494
Co., Ltd. products
Sales of
Yantai Changyu Wine
Subsidiary alcoholic CNY5million 112,264,768 110,784,805 341,489,367 12,088,947 9,513,544
Sales Co., Ltd.
products
Changyu Trading Co., Sales of
Ltd. in Development Subsidiary alcoholic CNY5million 67,025,331 14,398,027 86,929,541 21,820,485 16,336,467
Zone of Yantai products
Sales of
Laizhou Changyu
Subsidiary alcoholic CNY1million 60,212,142 1,000,000 144,954,763 5,248,798 3,936,574
Wine Sales Co., Ltd.
products
Acquisition and disposal of subsidiaries during the report period
Available Not available
Explanation on main holding and joint stock companies
No
9. Situation of the structured subjects controlled by the Company
Available Not available
23
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
10. Risks and response measures
1)Risk in price fluctuation of raw materials
Grapes are the Company’s main raw materials. The grape’s yield and quality are affected to
a certain extent by the natural factors such as drought, wind, rain, frost and snow. These
force majeure factors greatly influence the quantity and price of the grapes in this Company
orders and add the uncertainty to the Company’s production and operation. Therefore, the
Company will lower the risks that are likely to affect grape quality and result in price
fluctuation by means of expanding the self-run vineyards, strengthening the vineyard
management and optimizing the layout of vineyards.
2)Risk in uncertainty of market input and output
To cope with the cutthroat market competition and to meet the needs for market
development, the Company has input more and more capital in the market and the sales
expense has taken up a higher percentage point in the business revenue. The input-output
ratio will affect the Company’s operating results to a great extent and the risk that some
investments may not reach the expectations is likely to occur. Therefore, the Company will
strengthen market research and analysis, enhance market forecast accuracy and continue to
perfect the input-output evaluation system to ensure the investments in market to be
satisfactory as expected.
3)Risk in product transport
The Company’s products are fragile and sent to different places all over the world, mostly
by sea, railway and expressway. The peak season of sales is usually in cold winter and close
to the spring festival when market has a great demand. At that time, the natural and human
factors such as serious shortage of transport capacity resulting from busy flow of people and
goods, wind, snow, freezing as well as traffic accidents make the transport departments
difficult to send products to markets in time and safely. As a result, it makes this Company
have to face the risks of missing the peak season of sales. Therefore, the Company will
adopt all methods possible like making precise sales prediction and well designed
connection of production and sales, reasonably arranging production and transport means
and making use of more available warehouses in different places to lower these kinds of
risks.
4)Risk in investment faults
The Company invested many projects in the previous periods and the investment amounts
were relatively large. For individual project, owing to the influence of various factors, it led
to have the risks of facing with the investment amount out of budget or hardly taking back
the expected investment earnings. The Company will take an adequate argument and
scientific decision-making for investment projects, try hard to reduce and avoid investment
risks.
5)Risk in exchange rate
The Company’s overseas subsidiaries export products to many different countries and the
export amount is relatively large. There may be exchange losses or gains due to exchange
rate fluctuation.
24
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
6)Risk in epidemic risk
The Company’s products are currently mainly used for people’s consumption at gatherings.
If the chance of gathering declines due to the epidemic, it may have a greater negative
impact on the Company’s product sales.
25
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
IV. Corporate Governance
1. Information for the shareholders’ meeting and interim shareholders’ meeting held
during the report period
1)Information for the shareholders’ meeting during the report period
Participation Convening Disclosure
Session Meeting type Meeting Resolution
ratio of investors date date
At this meeting, it deliberated and approved
2021 Annual Board of Directors’ Work
Report, 2021 Annual Board of Supervisors’
Work Report, 2021 Annual Report, Proposal
on 2021 Annual Profit Distribution,
Proposal on 2022 Annual Financial Budget,
Proposal on Changing License Use Mode of
Changyu Trademarks, Proposal on
2021 Annual Annual Appointment of Certified Public Accounting
Shareholders’ Shareholders’ 60.42% 2022.05.27 2022.05.28 Firm, Proposal on Reelection of Board of
Meeting Meeting Directors, Proposal on Appointment of
Independent Directors and Proposal on
Reelection of Board of Supervisors by the
way of open ballot. For detailed
information, please refer to Resolution
Announcement of 2021 Annual
Shareholders’ Meeting (Announcement no.:
2022-Temporary 12) published on
http://www.cninfo.com.cn
2)Request for convening interim shareholders’ meeting by priority shareholders owing
recovered voting right
Available Not available
2. Changes in the Company’s directors, supervisors and senior executives
Available Not available
Name Position Type Date Reason
Bin LENG Director Expiration of 2022.05.27 Leaving the post of director owing to the expiration of
appointment the eighth session board of directors
Fei LUO Independent Expiration of 2022.05.27 Leaving the post of independent director owing to the
Director appointment expiration of the eighth session board of directors
Lanlan Supervisor Expiration of 2022.05.27 Leaving the post of supervisor owing to the expiration
ZHANG appointment of the seventh session board of directors
Jianxun Director Being elected 2022.05.27 Being elected as the director at the 2021 Annual
JIANG Shareholders’ Meeting
Zhuquan Independent Being 2022.05.27 Being elected as the independent director at the 2021
WANG Director appointed Annual Shareholders’ Meeting
Qingkun General manager Being 2022.06.09 Being appointed as the general manager assistant by
KONG assistant appointed the board of directors
Wenping Supervisor Being elected 2022.05.27 Being elected as the supervisor at the Workers and
ZHENG Employees' Congress
26
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
3. Situation of profit distribution and capitalization of capital reserve into share capital
during the report period
Available Not available
The Company plans not to distribute cash dividends or give bonus shares or make capitalization of
capital reserve into share capital.
4. Implementation of the Company’s equity inventive plan, employee stock ownership
plan or other employee incentive measures
Available Not available
There are no implementation of the Company’s equity inventive plan, employee stock
ownership plan and other employee incentive measures during the report period.
27
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
V. Environmental and Social Responsibility
1. Major environmental situation
Whether the listed company and its subsidiaries belong to major polluters published by the
environmental protection department
Yes No
Name of major Quantity Distribution Discharg Total Total Condition
Name of Implemented
pollutants and Mode of of situation of e volume approved of
company or pollution discharge
particular discharge discharge discharge concentra of volume of excessive
subsidiary standard
pollutants outlet outlet tion discharge discharge discharge
Emission Standard
for Air Pollutants
of
Boiler(GB13271-2
014), Emission
Confirmed in Standard for Odor
Discharge line with Pollutants
outlet of national (GB14554-93), 4a
boiler standard in Class 2 of
Organized
Chateau chimney Graphical Meeting Emission Standard
Changyu exhaust gas,
and Signs for the for Environmental
Icewine Co., inorganizedexh 2 35m3/d 120m3/d No
Ltd. discharge Environment national Noise at the
Liaoning aust gas, waster
outlet of al Protection standards Boundary of
water, noise
factory (GB15562.1- Industrial
waste 1995) Enterprises
water (GB15562.2- (GB12348-2008),,
1995) Comprehensive
Wastewater
Discharge
Standard of
Liaoning Province
(DB21/1627-2008)
Construction and operation of pollution prevention facilities
The exhaust gas, SO2 and NOX produced by this company's boiler are discharged through
ceramic tube dust removers and bag dust removers. A wastewater treatment station has been
constructed. The wastewater treatment process adopts the treatment process of hydrolysis-
aerobiont. Production waste water and domestic sewage are treated by the in-plant
wastewater treatment station and then discharged into the wastewater treatment plant in
Beidianzixiang Town.
Environmental impact assessment of construction projects and other environmental
28
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
protection administrative permits
It has been approved in the Huanhuanjianzi (2016) No.24 issued by the Environmental
Protection Bureau of Huanren Manchu Autonomous County.
Emergency plan for emergentenvironmentalincident
The Company has formulated a comprehensive emergency plan for
emergentenvironmentalincident.
Environmental self-monitoring program
The Company has formulated a complete environmental self-monitoring program.
Administrative penalties due to environmental issues during the reporting period
Name of Company or Penalty Violation Impact on the Production and Rectification Measures of
Penalty Result
Subsidiary Reason Situation Operation of the Listed Company the Company
None None None None None None
Other environmental information that should be made public
No
Measures taken for reducing carbon emissions and effects
Available Not available
Other related environmental information
No
2.Social responsibility performance
1) The Company actively responds to the call of the state, served the rural revitalization well,
adopted the mode of “company + farmer” or “company + cooperative + farmer”, reformed
the sloping fields of Jiaodong Peninsular and the northwestern area including Ningxia and
Xinjiang and so on, the uncultivated land or the barren land into graperies. By means of
providing capital and technology of viticulture to fruit growers, scientific management level
of vineyard had been improved. The Company spared no effort to popularize the
non-pollution and mechanized planting methods, continuously improved production
efficiency of grape base and quality of grape, and reduced production cost of grape and labor
intensity. Through the above measures, on the one hand, it promotes the effective use of land
resources and increases the income of farmers; on the other hand, it improve the local
ecological environment.
2) The Company provided counterpart supports to Huangchengyang village in Longkou City,
an old revolutionary base area by purchasing local agricultural products to help solve the
problem of slow sales.
3) The Company provided help and assistance to the Company’s in-service or retired
employees with poor families, as well as the Company’s in-service or retired employees with
chronic or serious illnesses.
29
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
VI. Major issues
1. Commitments that the Company’s actual controllers, shareholders, related parties, acquirers and the Company and other related
commitment parties have implemented during the report period and have not implemented up to the end of the report period
Available Not available
Commitment Commitment
Commitments Commitment party Commitment type Commitment content Implementation
time period
Yantai Changyu Solve horizontal
Non-horizontal competition May 18th, 1997 Forever Has been performing
Group Co., Ltd. competition
According to Trademark License According to Trademark License
Contract, the trademark royalty of Contract, the trademark royalty annually
Changyu and other trademarks paid paid by the Company to Changyu Group
Commitments at the initial shall be mainly used by Changyu Group
public offering or refinancing Yantai Changyu by the Company to Yantai Changyu
Clear the use of Group Co., Ltd. every year is mainly From May 18th, 1997 to publicize trademarks including
May 18th, 1997
Group Co., Ltd. trademark royalty used for advertising to April 4th, 2019 Changyu and contract products. Except
2013 to 2017 during which the
Changyu and other trademarks and commitment was not strictly performed,
this contract products by Yantai Yantai Changyu Group Co., Ltd. has
Changyu Group Co., Ltd. been performing its commitment.
The CNY231,768,615 that was not
used for publicity of trademarks and
contract products as promised will
be offset by the four-year trademark
Commitments to middle and Compensating royalty from 2019 to 2022. If From April 4th, 2019
Yantai Changyu
small shareholders of the unredeemed insufficient, the shortfall would be April 4 , 2019
th to December 31st, Has been performing
Group Co., Ltd.
Company commitment filled in one time in 2023. If there is 2023
any excess, the excess portion of the
trademark royalty would be
collected from the year with excess
occurrence.
30
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Commitment under timely
Yes
implementation or not
According to the Trademark License Contract (hereafter referred to as “the Contract”), Changyu Group promises that the trademark royalty annually paid by
the Company to Changyu Group shall be mainly used by Changyu Group to publicize trademarks and contract products. But above-mentioned ‘mainly’ is not a
specific number, which is easy to cause divergence due to different understanding and leads to problem appearance during the implementation process.
From 2013 to 2017, Changyu Group collected a total of CNY420,883,902 trademark royalty, of which 51% was used to publicize trademarks including
Changyu and contract products with amount of CNY214,650,790. The amount has been used to publicize trademarks including Changyu and contract products
is CNY50,025,181, with a balance of CNY164,625,609. In 2018 and 2019, the trademark royalty collected of 2017 and 2018 is CNY155,623,907, of which
Whether or not to have 51% is used to publicize trademarks including Changyu and contract products with amount of CNY79,368,193. The amount has been used to publicize
specific reasons of the trademarks including Changyu and contract products is CNY12,225,187, with a balance of CNY67,143,006. From 2013 to 2018, the accumulated balance of
unimplemented commitment Changyu Group using to publicize trademarks including Changyu and contract products is CNY231,768,615. Changyu Group promises that the four-year
and next steps trademark royalty from 2019 to 2022 will be used for offset. If insufficient, the shortfall would be filled in one time in 2023. If there is any excess, the excess
portion of the trademark royalty would be collected from the year with excess occurrence.
If Changyu Group is not able to implement the above-mentioned commitment owing to various reasons, the Company will timely supervise and urge Changyu
Group to fulfill its commitment and request Changyu Group to raise funds through bank loaning, assets sales and equity sales etc. in order to implement the
commitment.
For detailed information, please refer to Announcement on Commitment Issues of Yantai Changyu Group Co., Ltd. disclosed on April 4, 2019.
31
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
2. Non-operational occupation capital of the listed company by controlling shareholder
and its related parties
Available Not available
There is no non-operational occupation capital of the listed company by controlling
shareholder and its related parties during the report period.
3. Illegal external guarantee
Available Not available
There is no illegal guarantee situation during the report period.
The appointment and dismissal of certified public accountants
4. Appointment and dismissal of accounting firms
Whether the semi-annual report has been audited
Yes No
The semi-annual report has not been audited.
5. Explanation from the board of directors and the board of supervisors for the
“Non-standard Audit Report” during this report period
Available Not available
6. Explanation from the board of directors for the “Non-standard Audit Report” of last
year
Available Not available
7. Issues related with bankruptcy reorganization
Available Not available
There are no related issues of bankruptcy reorganization happened at the end of the report
period.
8. Litigation Issue
Material litigation and arbitration
Available Not available
There are no material litigation and arbitration during the report period.
Other Litigation Issue
Available Not available
9. Penalty and rectification
Available Not available
10. Credit of the Company, its controlling shareholder and actual controller
Available Not available
11. Major related transactions
1) Related transactions in relation to routine operations
Available Not available
There are no related transactions in relation to routine operations during the reporting period.
32
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
2) Related transactions in relation to acquisition and sales of assets or equity
Available Not available
There are no related transactions in relation to acquisition or sales of assets or equity during
the report period.
3) Related transactions in relation to common foreign investment
Available Not available
There are no related transactions in relation to common foreign investment during the report
period.
4) Related credit and debt dealings
Available Not available
Whether or not existing non-operating related credit and debt transactions
Yes No
There are no non-operating related credit and debt transactions during the report period.
5) Deals of related financial companies
Available Not available
There is no deposit, loan, credit granting or other financial business between the related
financial companies and related parties.
6) Deals between financial companies controlled by the Company and relayed parties
Available Not available
There is no deposit, loan, credit granting or other financial business between the financial
companies controlled by the Company and related parties.
7) Other major related transactions
Available Not available
For other major related transactions, please refer to the Announcement of 2022 Annual
Expected Routine Related Transaction and the Section XI “ Related Parties and Related
Transaction” of the Financial Report of this report.
Disclosure website of interim report for major related transaction
Disclosure date of Name of disclosure website for
Name of interim announcement
interim announcement interim announcement
Announcement of 2022 Annual Expected Routine April 27, 2022 www.cninfo.com.cn
Related Transaction
12. Major contracts and execution conditions
1) Trusteeship, contract and lease issues
① Trusteeship situation
Available Not available
There is no trusteeship situation during the report period.
② Contract situation
Available Not available
33
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
There is no such contract situation during the report period.
③ Lease situation
Available Not available
Explanation for lease situation
On January 1st, 2022, the Company renewed the Space Lease Agreement with the controlling
shareholder Yantai Changyu Group Company Limited. The Company leased the space with
15,196.94 square meters locating at No. 174 Shihuiyao Road, Zhifu District, Yantai City. The
rent per year is CNY 1.4645 million with a rental period of 5 years from January 1st, 2022 to
December 31st, 2026. On January 1st, 2022, the Company’s subordinate Sales & Marketing
Co. of Yantai Changyu Pioneer Wine Company Limited Brandy Sales Division renewed the
Space Lease Agreement with the controlling shareholder Yantai Changyu Group Company
Limited, leasing the space with 42,552.83 square meters locating at No. 1 Jichang Road,
Zhifu District, Yantai City and the space with 3,038 square meters locating at 56 Dama Road,
Zhifu District, Yantai City, which are all under the name of controlling shareholder. The rent
of above spaces per year is CNY 4.3935 million with a rental period of 5 years from January
1st, 2022 to December 31st, 2026.
On July 1st, 2017, this Company signed a house-leasing contract with Yantai Shenma
Packaging Company Limited. According to this contract, since July 1st, 2017, this Company
leased property to Yantai Shenma Packaging Company Limited for a business purpose with
the annual rent of CNY 1,626,880. This contract expires on June 30th, 2022.
Project whose profit and loss brought for the Company reach more than 10% of the total
profit during the report period
Available Not available
There are no lease projects whose profit and loss brought for the Company reach more than
10% of the total profit during the report period.
34
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
2) Major guarantee
Available Not available
Unit: CNY’0000
External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries）
Disclosure date of Actual date of Whether or not Whether or not belong
Guarantee object Guarantee Actual guarantee Guarantee
related announcement occurrence (date Guarantee type Collateral Counter Guarantee complete to related-party
name quota amount Period
about guarantee quota of agreement) implementation guarantee
Yantai Economic
Tendering guarantee for
and Technological Joint and several
Yantai Changyu Wine
Development 2016.12.22 34,160 2016.12.21 34,160 liability None 10 years No No
Research and Development
Zone Management guarantee
Company Limited’ s loans
Council.
Total of the actual external
Total of the external guarantee quota
0 guarantee amount during the report 0
approved during the report period (A1)
period (A2)
Total of the external guarantee quota Balance of the actual external
approved by the end of the report period 34,160 guarantee by the end of the report 34,160
(A3) period (A4)
Guarantee situations between the Company and subsidiaries
Disclosure date of Actual date of Whether or not Whether or not belong
Guarantee object Guarantee Actual guarantee Guarantee
related announcement occurrence (date Guarantee type Collateral Counter Guarantee complete to related-party
name quota amount Period
about guarantee quota of agreement) implementation guarantee
Yantai Changyu Joint and several
Wine Research liability Plant and other
2016.12.22 72,176 2016.12.21 72,176 None 10 years No Yes
and Development guarantee; fixed assets
Company Limited Mortgage
Joint and several
Kilikanoon Estate
2018.12.05 8,528 2018.12.13 7,518 liability None None 5 year No Yes
Pty Ltd
guarantee
Total of the guarantee quota approved to Balance of the actual guarantee for
subsidiaries by the end of the report period 80,704 subsidiaries by the end of the report 79,694
(B3) period (B4)
Guarantee situations between subsidiaries
Guarantee object Disclosure
Guarantee quota Actual date of Actual guarantee Guarantee type Collateral Counter Guarantee
Guarantee Whether or not Whether or not belong
name date of related amount Period
occurrence (date complete to related-party
announcement
35
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
about of agreement) implementation guarantee
guarantee
quota
— — — — — — — — — — —
Total guarantee amount of the Company（Total of above three major items）
Balance of the actual guarantee by
Total of the approved guarantee quota by
114,864 the end of the report period 113,854
the end of the report period（A3+B3+C3）
（A4+B4+C4）
The proportion of actual total guarantee amount (A4+B4+C4) accounting
10.85%
for the Company’s net asset
Among :
The amount of guarantee for shareholders, actual controllers and their related parties（D） 0
The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than
0
70% directly or indirectly（E）
Total amount of guarantee of the part that exceeds 50% of net assets（F） 0
Total amount of the above-mentioned three items（D+E+F） 0
Explanation for undue guarantees that have happened warranty liability or may take joint payback
No
liabilities during the report period (if have)
Explanation for violating due process to provide external guarantee (if have) No
Explanation on specific situations of adapting guarantee by complex methods
No.
36
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
3) Financial management entrustment
Available Not available
There is no financial management entrustment during the report period.
4) Other important contracts
Available Not available
There are no other important contracts during the report period.
13. Other Major issues
Available Not available
There are no other major issues need to be explained during the report period.
14. Major issues of Company’s subsidiaries
Available Not available
37
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
VII. Changes in Shares and Shareholders’ Situation
1. Changes in shares
1) Changes in shares
Unit: share
Amount before this change Change (+, -) Amount after this change
Percentage Distribute bonus Transfer other capital Percentage
Amount Allot new share Others Subtotal Amount
% share to share capital %
I. Shares with trading limited condition
1. State-owned holdings
2. State-owned legal person holdings
3. Other domestic holdings
Among which: domestic legal person
domestic natural person
4. Foreign-owned holdings
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 685,464,000 100% 685,464,000 100%
1. A shares 453,460,800 66.15% 453,460,800 66.15%
2. B shares 232,003,200 33.85% 232,003,200 33.85%
3. Oversea listed foreign shares
4. Others
III. Total shares 685,464,000 100% 685,464,000 100%
38
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Cause of share change
Available Not available
Approval of share change
Available Not available
Transfer ownership of changed shares
Available Not available
Implementation progress of share buy-back
Available Not available
Implementation progress of reducing holding buy-back share through the way of centralized bidding
Available Not available
The influence of share change on the financial indicators such as basic earnings per share, diluted earnings per share of the latest year and the latest period,
net asset per share belonging to the Company’s common shareholders, etc.
Available Not available
Other contents the Company thinks necessary or securities regulatory departments ask to make public.
Available Not available
2) Changes in restricted shares
Available Not available
2. Securities issuance and listing situation
Available Not available
39
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
3. The number of shareholders of the Company and the shareholdings
Total number of preferred shareholder recovering voting power by the end of report period (if have)
Total shareholders in the report period 49,522 0
(see note 8)
Shareholders holding more than 5% or the top 10 shareholders holding situation
Character of Percentage Shares held until the end Changes during the Number of Number of Pledged or frozen
Name of Shareholders
shareholders (%) of the report period report period restricted shares unrestricted shares Share status Amount
Domestic non-state legal
YANTAI CHANGYU GROUP CO., LTD. 50.40% 345,473,856 0 345,473,856 - -
person
GAOLING FUND, L.P. Foreign legal person 3.08% 21,090,219 0 21,090,219 - -
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD Foreign legal person 1.12% 7,683,016 -1,457,200 7,683,016 - -
SHENWAN HONGYUAN SECURITIES
Foreign legal person 1.06% 7,293,952 -120,000 7,293,952
(HONGKONG) LIMITED
Fengdi JIANG Domestic natural person 0.75% 5,112,000 258,000 5,112,000 - -
Haitong International Securities Company
Foreign legal person 0.73% 5,006,502 -54,200 5,006,502 - -
Limited-Account Client
GUOTAI JUNAN SECURITIES (HK) LIMITED Foreign legal person 0.67% 4,621,503 -390,368 4,621,503 - -
FIDELITY PURITAN TRUST: FIDELITY SERIES
Foreign legal person 0.60% 4,089,162 -2,261,600 4,089,162 - -
INTRINSIC OPPORTUNITIES FUND
VANGUARD EMERGING MARKETS STOCK
Foreign legal person 0.59% 4,026,863 -144,000 4,026,863 - -
INDEX FUND
CHINA MERCHANTS SECURITIES (HK) CO.,
State-own legal person 0.58% 4,000,228 -589,432 4,000,228 - -
LIMITED
Strategic investors or legal result of the placement of new shares to become a
No
top 10 shareholders (if have) (see note 3)
Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action
The explanation for the associated relationship and accordant action
relationship with the other 9 listed shareholders, while the relationship among the other shareholders is unknown.
Explanation of the above-mentioned shareholders’ entrustment/ fiduciary
No
voting rights and waiver of the voting rights
Special explanation for the existence of a special repurchase account among
No
the top 10 shareholders (if have) (see note 11)
The top 10 shareholders with shares without trading limited condition
Name of Shareholders Number of shares without trading limited condition held until the end of the year Type of share
40
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Type of share Amount
YANTAI CHANGYU GROUP CO., LTD. 345,473,856 A 345,473,856
GAOLING FUND, L.P. 21,090,219 B 21,090,219
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 7,683,016 B 7,683,016
SHENWAN HONGYUAN SECURITIES (HK) LIMITED 7,293,952 B 7,293,952
Fengdi JIANG 5,112,000 A 5,112,000
Haitong International Securities Company Limited-Account Client 5,006,502 B 5,006,502
GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED 4,621,503 B 4,621,503
FIDELITY PURITAN TRUST: FIDELITY SERIES INTRINSIC B
4,089,162 4,089,162
OPPORTUNITIES FUND
VANGUARD EMERGING MARKETS STOCK INDEX FUND 4,026,863 B 4,026,863
CHINA MERCHANTS SECURITIES (HK) CO., LIMITED 4,000,228 B 4,000,228
The explanation for the associated relationship and accordant action of the top
10 shareholders with unrestricted shares, the the associated relationship and Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action
accordant action between the top 10 shareholders with unrestricted shares and relationship with the other 9 listed shareholders, and the relationship among the other shareholders is unknown.
the top 10 shareholders
Explanation for the top 10 shareholders who involved in financing activities
The top 10 shareholders do not involve in financing activities and stock trade business.
and stock trading business (if have) (see note 4)
Whether or not the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during the
report period
Yes No
There is no agreed repurchase transaction taken by the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares during the
report period.
41
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
4. Changes in shareholdings of directors, supervisors and senior executives
Available Not available
Number of Increased number Decreased number Number of shares Number of restricted Number of restricted Number of restricted
Shares held at the of shares held in the of shares held in held at the end shares granted at the shares granted in the shares granted at the
Name Position Status beginning period current period the current period period beginning period current period end period
(shares) (shares) (shares) (shares) (shares) (shares) (shares)
Hongjiang
Chairman Incumbent 37,800 0 0 37,800 0 0 0
ZHOU
Director,
Jian SUN Incumbent 60,000 30,000 0 90,000 0 0 0
General manager
Deputy general
Hua JIANG Incumbent 0 10,000 0 10,000 0 0 0
manager
Total - - 97,800 40,000 0 137,800 0 0 0
5. Changes in controlling shareholders or actual controllers
Changes in the controlling shareholders during the report period
Available Not available
There is no any change in the controlling shareholders during the report period.
Changes in the actual controllers during the report period
Available Not available
There is no any change in the actual controllers during the report period.
42
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
VIII. Related Situation of Preferred Shares
Available Not available
There are no preferred shares during the report period.
IX. Related Situation of Bonds
Available Not available
43
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
X. Financial Report
1. Audit report
Whether the semiannual report has been audited
Yes No
2. Financial statement
The unit in the statements of the financial annotations is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2022 Unit: Yuan
Item Note June 30, 2022 December 31, 2021
Current assets:
Monetary fund 7.1 1,904,942,625 1,567,095,993
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 400,000 42,827,666
Accounts receivable 7.3 217,886,837 291,006,410
Receivables financing 7.4 293,023,621 364,457,497
Advance payment 7.5 39,189,201 75,235,879
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 24,225,429 30,125,270
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 7.7 2,833,824,908 2,802,622,520
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 32,053,687 217,152,601
Total current assets 5,345,546,308 5,390,523,836
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 45,575,193 46,496,510
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 23,031,335 24,502,258
Fixed assets 7.11 5,546,334,638 5,687,867,314
Construction in progress 7.12 660,727,258 590,172,099
Productive biological assets 7.13 187,656,289 193,712,942
44
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note June 30, 2022 December 31, 2021
Oil-and-gas assets
Right-of-use assets 7.14 149,020,444 134,569,039
Intangible assets 7.15 607,903,340 617,866,879
Development expenditure
Goodwill 7.16 112,374,541 112,374,541
Long-term prepaid expenses 7.17 283,582,115 284,593,163
Deferred income tax assets 7.18 189,437,218 245,210,731
Other non-current assets 7.19 132,977,617 144,120,442
Total non-current assets 7,938,619,988 8,081,485,918
Total assets 13,284,166,296 13,472,009,754
Current liabilities:
Short-term loans 7.20 488,464,425 622,066,457
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.21 449,973,807 493,453,816
Advances from customers
Contract liabilities 7.22 141,073,446 147,120,716
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.23 144,795,172 195,019,441
Taxes and dues payable 7.24 186,592,112 342,322,300
Other payables 7.25 661,264,913 453,033,491
Including: Interest payable 1,906,063 323,074
Dividends payable 308,809,220 68,392
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.26 135,659,360 110,865,126
Other current liabilities 7.27 18,339,549 18,374,193
Total current liabilities 2,226,162,784 2,382,255,540
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.28 132,856,562 176,047,043
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 7.29 111,496,142 101,811,588
Long-term accounts payable 7.30 42,000,000 64,000,000
Long-term employee remunerations payable
Estimated liabilities
45
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note June 30, 2022 December 31, 2021
Deferred income 7.31 36,784,847 41,295,338
Deferred income tax liabilities 7.18 11,074,738 11,803,970
Other non-current liabilities 7.32 2,100,502 2,119,671
Total non-current liabilities 336,312,791 397,077,610
Total liabilities 2,562,475,575 2,779,333,150
Owner’s equity:
Capital stock 7.33 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 7.34 524,968,760 524,968,760
Minus: Treasury stock
Other comprehensive income 7.35 -41,104,673 -34,707,177
Special reserves
Surplus reserves 7.36 342,732,000 342,732,000
General risk preparation
Undistributed profit 7.37 8,979,427,403 8,929,426,600
Total owner’s equities attributable to the parent company 10,491,487,490 10,447,884,183
Minority equity 230,203,231 244,792,421
Total owner’s equities 10,721,690,721 10,692,676,604
Total liabilities and owner’s equities 13,284,166,296 13,472,009,754
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note June 30, 2022 December 31, 2021
Current assets:
Monetary fund 1,084,199,585 562,588,819
Tradable financial assets
Derivative financial assets
Bills receivable 250,000 9,800,000
Accounts receivable
Receivables financing 45,275,364 62,411,636
Advance payment 2,698,735 406,500
Other receivables 16.1 278,054,466 398,072,976
Including: Interest receivable
Dividends receivable 3,153,780
Inventories 393,705,945 383,294,208
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 17,401,633 20,637,860
Total current assets 1,821,585,728 1,437,211,999
Non-current assets:
Debt investments
46
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note June 30, 2022 December 31, 2021
Other debt investments
Long-term receivables
Long-term equity investments 16.2 7,709,394,955 7,599,421,494
Other investments in equity instruments
Other non-current financial assets
Investment real estate 23,031,335 24,502,258
Fixed assets 219,898,957 231,284,799
Construction in progress 2,750,247 255,996
Productive biological assets 110,798,299 114,753,306
Oil and gas assets
Right-of-use assets 41,153,484 36,826,342
Intangible assets 76,670,966 78,043,888
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 15,306,224 18,033,185
Other non-current assets 1,757,200,000 2,023,500,000
Total non-current assets 9,956,204,467 10,126,621,268
Total assets 11,777,790,195 11,563,833,267
Current liabilities:
Short-term loans 100,000,000 150,000,000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 51,262,746 90,339,903
Advances from customers
Contract liabilities
Employee remunerations payable 58,573,274 66,770,838
Taxes and dues payable 26,291,298 32,588,429
Other payables 741,100,131 445,874,937
Including: Interest payable 88,889
Dividends payable 308,458,800
Liabilities held for sale
Non-current liabilities due within one year 3,593,017 1,485,190
Other current liabilities
Total current liabilities 980,820,466 787,059,297
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 43,905,471 43,312,517
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
47
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note June 30, 2022 December 31, 2021
Deferred income 1,555,787 2,268,527
Deferred income tax liabilities 88,555 88,555
Other non-current liabilities 1,123,425 1,164,471
Total non-current liabilities 46,673,238 46,834,070
Total liabilities 1,027,493,704 833,893,367
Owner’s equities:
Capital stock 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 560,182,235 560,182,235
Minus: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 342,732,000 342,732,000
Undistributed profit 9,161,918,256 9,141,561,665
Total owner’s equities 10,750,296,491 10,729,939,900
Total liabilities and owner’s equities 11,777,790,195 11,563,833,267
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Total operating income 1,953,092,135 1,874,460,437
Including: Operating income 7.38 1,953,092,135 1,874,460,437
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1,493,458,867 1,385,344,667
Including: Operating costs 7.38 821,855,466 761,513,544
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of the withdrawn reserve fund
for insurance contract
Policy bonus payment
Amortized reinsurance expenditures
Taxes and surcharges 7.39 114,739,618 100,220,017
Selling expenses 7.40 417,764,419.00 388,385,610
Administrative expenses 7.41 127,504,270.00 123,384,629
Research and development expenses 7.42 5,509,656.00 2,477,835
Financial expenses 7.43 6,085,438 9,363,032
Including: Interest expenses 11,201,775 14,239,535
Interest income 10,191,697 5,827,243
Plus: Other profit 7.44 21,629,245 21,978,695
48
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note Sum of current period Sum of prior period
Investment profit (loss is listed with “-”) 7.45 -921,317 -1,621,780
Including: Investment profit for joint-run business
-921,317 -1,621,780
and joint venture
Financial assets measured at amortized
cost cease to be recognized as income
Exchange income (loss is listed with “-”)
Net exposure hedge income (loss is listed with “-”)
Income from fair value changes (loss is listed
with “-”)
Credit impairment loss (loss is listed with “-”) 7.46 486,076 -6,176,948
Asset impairment loss (loss is listed with “-”) 7.47 1,490,900 3,680,018
Income from asset disposal (loss is listed with “-”) 7.48 -8,239,072
3. Operating profit (loss is listed with “-”) 474,079,100 506,975,755
Plus: Non-operating income 7.49 2,448,613 2,488,778
Minus: Non-operating expenses 7.50 1,343,532 569,721
4. Total profits (total loss is listed with “-”) 475,184,181 508,894,812
Minus: Income tax expenses 7.51 128,189,749 136,579,849
5. Net profit (net loss is listed with “-”) 346,994,432 372,314,963
5.1 Classification by operation continuity
5.1.1 Net profit from continuing operation (net loss is
346,994,432 372,314,963
listed with “-”)
5.1.2 Net profit from terminating operation (net loss
is listed with “-”)
5.2 Classification by ownership
5.2.1 Net profit attributable to owner of the parent
358,459,603 371,821,819
company
5.2.2 Minority interest income -11,465,171 493,144
6. Net after-tax amount of other comprehensive income 7.52 -7,384,531 -24,776,238
Net after-tax amount of other comprehensive income
-6,397,496 -21,618,495
attributable to owner of the parent company
6.1 Other comprehensive income not to be reclassified
into profit and loss later
6.1.1 Changes after remeasuring and resetting
the benefit plans
6.1.2 Other comprehensive income not to be
reclassified into profit and loss under
equity method
6.1.3 Changes in the fair value of other
investments in equity instruments
6.1.4 Changes in the fair value of the enterprise’s
own credit risk
6.1.5 Other
6.2 Other comprehensive income to be reclassified into
-6,397,496 -21,618,495
profit and loss later
6.2.1 Other comprehensive income to be
reclassified into profit and loss under
equity method
6.2.2 Changes in the fair value of other debt
investments
6.2.3 Amount of financial assets reclassified into
other comprehensive income
49
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note Sum of current period Sum of prior period
6.2.4 Provision for credit impairment of other
credit investments
6.2.5 Provision for cash-flow hedge
6.2.6 Difference in translation of Foreign
-6,397,496 -21,618,495
Currency Financial Statement
6.2.7 Other
Net after-tax amount of other comprehensive income
-987,035 -3,157,743
attributable to minority shareholders
7. Total comprehensive income 339,609,901 347,538,725
Attributable to owner of the parent company 352,062,107 350,203,324
Attributable to minority shareholders -12,452,206 -2,664,599
8. Earnings per share:
8.1 Basic earnings per share 0.52 0.54
8.2 Diluted earnings per share 0.52 0.54
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Operating income 16.3 229,587,143 206,300,566
Minus: Operating costs 16.3 193,114,244 169,012,171
Taxes and surcharges 14,680,577 11,779,088
Selling expenses
Administrative expenses 20,654,280 29,404,865
Research and development expenses 529,139 522,997
Financial expenses -1,835,540 1,903,108
Including: Interest expenses 2,152,536 3,316,692
Interest income 3,670,286 1,700,240
Plus: Other profit 893,236 3,949,823
Investment profit (loss is listed with “-”) 16.4 328,290,041 494,528,070
Including: Investment profit for joint-run
-26,539 -477,762
business and joint venture
Financial assets measured at
amortized cost cease to be
recognized as income (loss is
listed with “-”)
Net exposure hedge income (loss is listed
with “-”)
Income from fair value changes (loss is listed
with “-”)
Credit impairment loss (loss is listed with “-”) -443
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed
30,882 -30,921
with “-”)
2. Operating profit (loss is listed with “-”) 331,658,602 492,124,866
Plus: Non-operating income 106,249 83,440
Minus: Non-operating expenses 325,220 371,527
3. Total profits (total loss is listed with “-”) 331,439,631 491,836,779
50
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note Sum of current period Sum of prior period
Minus: Income tax expenses 2,624,240 -376,545
4. Net profit (net loss is listed with “-”) 328,815,391 492,213,324
4.1 Net profit from continuing operation (net loss is
328,815,391 492,213,324
listed with “-”)
4.2 Net profit from terminating operation (net loss is
listed with “-”)
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive income not to be
reclassified into profit and loss later
5.1.1 Changes after remeasuring and resetting
the benefit plans
5.1.2 Other comprehensive income not to be
reclassified into profit and loss under
equity method
5.1.3 Changes in the fair value of other
investments in equity instruments
5.1.4 Changes in the fair value of the
enterprise’s own credit risk
5.1.5 Other
5.2 Other comprehensive income to be reclassified
into profit and loss later
5.2.1 Other comprehensive income to be
reclassified into profit and loss under
equity method
5.2.2 Changes in the fair value of other debt
investments
5.2.3 Amount of financial assets reclassified
into other comprehensive income
5.2.4 Provision for credit impairment of other
credit investments
5.2.5 Provision for cash-flow hedge
5.2.6 Difference in translation of Foreign
Currency Financial Statement
5.2.7 Other
6. Total comprehensive income 328,815,391 492,213,324
7. Earnings per share:
7.1 Basic earnings per share 0.48 0.72
7.2 Diluted earnings per share 0.48 0.72
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of
2,087,979,514 1,888,979,284
services
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial
institutions
51
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note Sum of current period Sum of prior period
Cash received from receiving insurance premium
of original insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment
funds
Cash received from collecting interest, handling
fees and commissions
Net increase in borrowing funds
Net increase in repurchasement business funds
Net cash received for buying and selling securities
Tax refund received 165,095,342 25,489,549
Other cash received related to operating activities 7.53 30,136,317 26,262,022
Subtotal of cash flows of operating activities 2,283,211,173 1,940,730,855
Cash paid for goods and services 636,965,411 528,698,794
Net increase in customer loans and advances
Net increase in deposits in central bank and interbank
deposits
Cash paid to original insurance contract payments
Net increase in lending funds
Cash paid to interest, handling fees and commissions
Cash paid to policy bonus
Cash paid to and on behalf of employees 266,617,445 260,016,591
Cash paid for taxes and expenses 482,260,853 429,710,784
Other cash paid related to operating activities 7.53 291,093,869 266,369,537
Sub-total of cash outflows of operating activities 1,676,937,578 1,484,795,706
Net cash flow from operating activities 606,273,595 455,935,149
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 86,000,000 5,200,000
Cash received from obtaining investment income
Cash received from obtaining interest income 474,434 97,241
Cash received from disposal of fixed assets,
24,186,808 11,531
intangible assets and other long-term assets
Net cash received from disposal of branch and other
business unit
Other cash received related to investing activities
Subtotal of cash flows of investment activities 110,661,242 5,308,772
Cash paid to acquire fixed assets, intangible assets
106,892,064 112,686,656
and other long-term assets
Cash for investment 518,000
Cash paid for purchasing fixed deposits 86,000,000 5,200,000
Net increase in hypothecated loan
Net cash paid for acquiring branch and other
business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 192,892,064 118,404,656
Net cash flow from investing activities -82,230,822 -113,095,884
3. Cash flow from financing activities
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Note Sum of current period Sum of prior period
Cash received from acquiring investment 7,430,000
Including: cash received from acquiring minority
7,430,000
shareholders investment by branch
Cash received from acquiring loans 428,548,896 596,450,339
Other cash received related to financing activities 21,654,861
Subtotal cash flows of financing activities 428,548,896 625,535,200
Cash paid for paying debts 590,123,879 609,426,516
Cash paid for distributing dividend and profit or
15,360,912 11,683,409
paying interest
Including: dividend and profit paid to minority
1,793,435
shareholders by branch
Other cash paid related to financing activities 9,765,810 7,144,318
Subtotal of cash outflows of financing activities 615,250,601 628,254,243
Net cash flow from financing activities -186,701,705 -2,719,043
4. Influences of exchange rate fluctuation on cash and
188,837 -400,533
cash equivalents
5. Net Increase in cash and cash equivalents 337,529,905 339,719,689
Plus: balance at the beginning of the period of cash
1,502,327,029 1,052,665,105
and cash equivalents
6. Balance at the end of the period of cash and cash
1,839,856,934 1,392,384,794
equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 264,608,586 219,352,502
Tax refund received
Other cash received related to operating activities 53,941,562 4,587,865
Subtotal of cash flows of operating activities 318,550,148 223,940,367
Cash paid for goods and services 149,862,593 119,811,768
Cash paid to and on behalf of employees 28,951,681 31,143,555
Cash paid for taxes and expenses 22,087,575 22,678,777
Other cash paid related to operating activities 12,091,557 98,483,900
Sub-total of cash outflows of operating activities 212,993,406 272,118,000
Net cash flow from operating activities 105,556,742 -48,177,633
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 86,000,000 5,200,000
Cash received from obtaining investment income 321,605,820.39 695,005,832
Cash received from obtaining interest income 474,433.61 97,241
Net cash received from disposal of fixed assets, intangible assets
31,808 47,954
and other long-term assets
Net cash received from disposal of branch and other business
unit
Other cash received related to investing activities 302,000,000
Subtotal of cash flows of investment activities 710,112,062 700,351,027
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Sum of current period Sum of prior period
Cash paid to acquiring fixed assets, intangible assets and other
5,975,121 2,688,616
long-term assets
Cash for investment 110,000,000
Cash paid for purchasing fixed deposits 86,000,000 5,200,000
Net cash paid for acquiring branch and other business unit
Other cash paid related to investment activities 35,700,000 290,000,000
Subtotal of cash outflows of investment activities 237,675,121 297,888,616
Net cash flow from investing activities 472,436,941 402,462,411
3. Cash flow from financing activities:
Cash received from acquiring investment
Cash received from acquiring loans 100,000,000 150,000,000
Other cash received related to financing activities
Subtotal cash flows of financing activities 100,000,000 150,000,000
Cash paid for debts 150,000,000 150,000,000
Cash paid to distribute dividend, profit or pay interest 2,387,083 2,442,943
Other cash paid related to financing activities 4,517,699 2,809,688
Subtotal of cash outflows of financing activities 156,904,782 155,252,631
Net cash flow from financing activities -56,904,782 -5,252,631
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents 521,088,901 349,032,147
Plus: balance at the beginning of the period of cash and cash
513,809,440 182,123,070
equivalents
6. Balance at the end of the period of cash and cash equivalents 1,034,898,341 531,155,217
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
2.7 Consolidated owner’s equity changing list
Unit: Yuan
This period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive Other Subtotal equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
1. Balance at the end of last year 685,464,000 524,968,760 -34,707,177 342,732,000 8,929,426,600 10,447,884,183 244,792,421 10,692,676,604
Plus: Accounting policies changing
Previous error correction
Business combination under common
control
Other
2. Balance at the beginning of this year 685,464,000 524,968,760 -34,707,177 342,732,000 8,929,426,600 10,447,884,183 244,792,421 10,692,676,604
3. Increased or decreased amount in this
period (reducing amount is listed with -6,397,496 50,000,803 43,603,307 -14,589,190 29,014,117
“-”)
3.1 Total comprehensive income -6,397,496 358,459,603 352,062,107 -12,452,206 339,609,901
3.2 Owners’ invested and reduced
capital
3.2.1 Owner’ invested common stock
3.2.2 Other equity instrument holders’
invested capital
3.2.3 Amount of shares paid and
reckoned in owners’ equity
3.2.4 Other
3.3 Profit distribution -308,458,800 -308,458,800 -2,136,984 -310,595,784
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk preparation
3.3.3 Distribution to owners (or
-308,458,800 -308,458,800 -2,136,984 -310,595,784
shareholders)
3.3.4 Other
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
This period
Owners’ equity of the parent company
Other equity instruments Minority
Item Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive Other Subtotal equity
stock
Other reserves
stock income
reserves reserves preparation profits equity
bonds
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over
from the benefit plan variation
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 524,968,760 -41,104,673 342,732,000 8,979,427,403 10,491,487,490 230,203,231 10,721,690,721
Unit: Yuan
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
1. Balance at the end of last year 685,464,000 524,968,760 576,129 342,732,000 8,714,091,755 10,267,832,644 236,597,990 10,504,430,634
Plus: Accounting policies changing -10,582,161 -10,582,161 -10,582,161
Previous error correction
Business combination under common
control
Other
2. Balance at the beginning of this year 685,464,000 524,968,760 576,129 342,732,000 8,703,509,594 10,257,250,483 236,597,990 10,493,848,473
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
3. Increased or decreased amount in this
period (reducing amount is listed with -35,283,306 225,917,006 190,633,700 8,194,431 198,828,131
“-”)
3.1 Total comprehensive income -35,283,306 500,102,606 464,819,300 2,551,124 467,370,424
3.2 Owners’ invested and reduced
7,840,000 7,840,000
capital
3.2.1 Owner’ invested common stock 7,840,000 7,840,000
3.2.2 Other equity instrument holders’
invested capital
3.2.3 Amount of shares paid and
reckoned in owners’ equity
3.2.4 Other
3.3 Profit distribution -274,185,600 -274,185,600 -2,196,693 -276,382,293
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk preparation
3.3.3 Distribution to owners (or
-274,185,600 -274,185,600 -2,196,693 -276,382,293
shareholders)
3.3.4 Other
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over
from the benefit plan amount
3.4.5 Retained earnings carried over
from other comprehensive income
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 524,968,760 -34,707,177 342,732,000 8,929,426,600 10,447,884,183 244,792,421 10,692,676,604
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
This period
Other equity instruments Minus: Other
Item Capital Special Surplus Undistributed Total owners’
Capital stock Preferred Perpetual Treasury comprehensive Other
Other reserves reserves reserves profits equity
stock bonds stock income
1. Balance at the end of last year 685,464,000 560,182,235 342,732,000 9,141,561,665 10,729,939,900
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 560,182,235 342,732,000 9,141,561,665 10,729,939,900
3. Increased or decreased amount in this
period (reducing amount is listed with 20,356,591 20,356,591
“-”)
3.1 Total comprehensive income 328,815,391 328,815,391
3.2 Owners’ invested and reduced capital
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
This period
Other equity instruments Minus: Other
Item Capital Special Surplus Undistributed Total owners’
Capital stock Preferred Perpetual Treasury comprehensive Other
Other reserves reserves reserves profits equity
stock bonds stock income
reckoned in owners’ equity
3.2.4 Other
3.3 Profit distribution -308,458,800 -308,458,800
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
-308,458,800 -308,458,800
shareholders)
3.3.3 Other
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from
the benefit plan amount
3.4.5 Retained earnings carried over from
other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 560,182,235 342,732,000 9,161,918,256 10,750,296,491
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Unit: Yuan
Last period
Item Other equity instruments Minus: Other
Capital Special Surplus Undistributed Total owners’
Capital stock Perpetual Treasury comprehensive Other
Preferred
Other reserves reserves reserves profits equity
stock bonds stock income
1. Balance at the end of last year 685,464,000 560,182,235 342,732,000 8,567,313,551 10,155,691,786
Plus: Accounting policies changing -6,620,268 -6,620,268
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 560,182,235 342,732,000 8,560,693,283 10,149,071,518
3. Increased or decreased amount in this
580,868,382 580,868,382
period (reducing amount is listed with “-”)
3.1 Total comprehensive income 855,053,982 855,053,982
3.2 Owners’ invested and reduced capital
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and reckoned
in owners’ equity
3.2.4 Other
3.3 Profit distribution -274,185,600 -274,185,600
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
-274,185,600 -274,185,600
shareholders)
3.3.3 Other
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Last period
Item Other equity instruments Minus: Other
Capital Special Surplus Undistributed Total owners’
Capital stock Perpetual Treasury comprehensive Other
Preferred
Other reserves reserves reserves profits equity
stock bonds stock income
the benefit plan amount
3.4.5 Retained earnings carried over from
other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 560,182,235 342,732,000 9,141,561,665 10,729,939,900
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
3. Company profile
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) was
incorporated as a joint-stock limited company in accordance with the Company Law of the
People’s Republic of China (the “PRC”) in the merger and reorganization carried out by
Yantai Changyu Group Co., Ltd. (“Changyu Group”) with its assets and liabilities in relation
to wine business. The Company and its subsidiary companies (hereinafter collectively
referred to as the “Group”) are engaged in the production and sale of wine, brandy and
sparkling wine, planting and purchase of grapes, development of tourism resources, etc. The
registered address of the Company is Yantai City, Shandong Province, and the office address
of the headquarters is 56 Dama Road, Zhifu District, Yantai City, Shandong Province.
As at June 30, 2022, the Company issued 685,464,000 shares accumulatively. Refer to Note
7.33 for details.
The parent company of the Group is Changyu Group incorporated in China, which was
ultimately and actually controlled by four parties, including Yantai Guofeng Investment
Holding Co., Ltd., ILLVA Saronno Holding Spa, International Finance Corporation and Yantai
Yuhua Investment & Development Co., Ltd.
The financial statement and the consolidated financial statement of the Company were
approved by the Board of Directors on August 24, 2022.
The details of scope of the consolidated financial statement in this period can be seen in Note
8 “Equity in other entities”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Company prepares the financial statement on the basis of continuous operation.
Since January 1, 2019 and January 1, 2020, the Group has respectively implemented new
financial instrument standards revised by the Ministry of Finance of the People’s Republic of
China (hereinafter referred to as the “Ministry of Finance”) in 2017 including Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instrument and Accounting Standards for Business Enterprises No. 14 - Revenue, and since
January 1, 2021, it has implemented Accounting Standards for Business Enterprises No. 21 -
Leases revised by the Ministry of Finance in 2018.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30,
2022, and no issues or situations causing major doubts to this ability are found. Therefore, this
financial statement is prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
This financial statement fulfills the requirement of Accounting Standards for Business
Enterprises (ASBE) issued by the Ministry of Finance and gives a true and integrated view of
the consolidated financial status and the financial status as at June 30, 2022, as well as the
consolidated operating result, the operating result, the consolidated cash flow and the cash
flow of the Company from January to June 2022.
In addition, the financial statement of the Company also complies with the related disclosure
requirements for statement and its notes stipulated by Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on
Financial Reports (2014 Revision) by the China Securities Regulatory Commission
(hereinafter referred to as the “CSRC”).
5.2 Accounting period
The accounting year is from January 1 to December 31 in Gregorian calendar.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for
processing to the cash or cash equivalent is realized. The operating cycle of the Company is
12 months.
5.4 Recording currency
Since Renminbi (RMB) is the currency of the main economic environment in which the
Company and the domestic subsidiary companies thereof are situated, the Company and the
subsidiary companies thereof adopt RMB as the recording currency. The overseas subsidiary
companies thereof determine EUR, CLP and AUD as the recording currency according to the
main economic environment in which they are situated. The currency in this financial
statement prepared by the Group is RMB.
5.5 Accounting treatment method for business combination under common control and
non-common control
5.5.1 Business combination under common control
A business combination under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or same multiple parties
before and after the combination, and that control is not transitory. The assets and liabilities
obtained by the combining party in the business combination shall be measured on the basis
of the carrying amount in the ultimate controlling party's consolidated financial statement as
at the combination date. Where there is a difference between the carrying amount of the net
assets acquired and the carrying amount of the combination consideration paid (or the total
par value of the shares issued), the stock premium in capital surplus shall be adjusted. If the
stock premium in capital surplus is not sufficient to offset, the retained earnings shall be
adjusted. The direct related expenses incurred for the business combination shall be included
in the current profit and loss when incurred. The combination date is the date on which the
combining party actually obtains control of the combined party.
5.5.2 Business combination under non-common control
A business combination under non-common control is a business combination in which all of
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
the combining parties are not ultimately controlled by the same party or same multiple parties
before and after the combination. The sum of fair values of the assets paid by the Group, as
the acquirer, (including the acquiree’s equity the Group held before the acquisition date),
liabilities incurred or assumed, and the equity securities issued on the acquisition date in
exchange for the control over the acquiree, deducts the fair value of the acquiree’s identifiable
net assets acquired in the combination on the acquisition date. If the difference is positive, it
shall be recognized as goodwill; and if it is negative, it shall be included in the current profit
and loss. All the identifiable assets, liabilities and contingent liabilities which are obtained
from the acquiree and meet the recognition conditions shall be confirmed by the Group on the
acquisition date according to the fair value thereof. The acquisition date is the date on which
the acquirer actually obtains control of the acquiree.
For a business combination involving entities not under common control and achieved in
stages, the Group remeasures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognises any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. In addition, any amount recognised in other comprehensive income that may be
reclassified to profit or loss, in prior reporting periods relating to the previously-held equity
interest, and any other changes in the owners’ equity under equity accounting, are transferred
to investment income in the period in which the acquisition occurs. If equity interests of the
acquiree held before acquisition-date were equity instrument investments measured at fair
value through other comprehensive income, other comprehensive income recognised shall be
moved to retained earnings on acquisition-date.
5.6 Compiling methods of consolidated financial statement
5.6.1 General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of following: power over the investee; exposure, or rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its
power over the investee. When assessing whether the Group has power, only substantive
rights (held by the Group and other parties) are considered. The financial position, financial
performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is
presented separately in the consolidated income statement below the net profit line item. Total
comprehensive income attributable to non-controlling shareholders is presented separately in
the consolidated income statement below the total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the opening
owners’ equity of the subsidiary, the excess is still allocated against the non-controlling
interests.
When the accounting period or accounting policies of a subsidiary are different from those of
the Company, the Company makes necessary adjustments to the financial statements of the
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
subsidiary based on the Company’s own accounting period or accounting policies. Intra-group
balances and transactions, and any unrealised profit or loss arising from intra-group
transactions, are eliminated when preparing the consolidated financial statements. Unrealised
losses resulting from intra-group transactions are eliminated in the same way as unrealised
gains, unless they represent impairment losses that are recognised in the financial statements.
5.6.2 Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business combination
involving entities under common control, the financial statements of the subsidiary are
included in the consolidated financial statements based on the carrying amounts of the assets
and liabilities of the subsidiary in the financial statements of the ultimate controlling party as
if the combination had occurred at the date that the ultimate controlling party first obtained
control. The opening balances and the comparative figures of the consolidated financial
statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business combination
involving entities not under common control, the identifiable assets and liabilities of the
acquired subsidiaries are included in the scope of consolidation from the date that control
commences, based on the fair value of those identifiable assets and liabilities at the
acquisition date.
5.6.3 Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses are
recognised as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost, any resulting gains or losses are
also recognised as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages, the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in subsidiaries
where control is retained.
If each of the multiple transactions forms part of a bundled transaction which eventually
results in the loss of control in the subsidiary, these multiple transactions are accounted for as
a single transaction. In the consolidated financial statements, the difference between the
consideration received and the corresponding proportion of the subsidiary’s net assets
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
(calculated continuously from the acquisition date) in each transaction prior to the loss of
control shall be recognised in other comprehensive income and transferred to profit or loss
when the parent eventually loses control of the subsidiary.
5.6.4 Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in control,
the difference between the proportion interests of the subsidiary’s net assets being acquired or
disposed and the amount of the consideration paid or received is adjusted to the capital
reserve (share premium) in the consolidated balance sheet, with any excess adjusted to
retained earnings.
5.7 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposit, and short-term highly
liquid investments which are readily convertible into known amount of cash with an
insignificant risk of changes in value.
5.8 Foreign currency transaction and foreign currency statement translation
When the Group receives capital in foreign currencies from investors, the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are, on initial recognition, translated to Renminbi at the spot exchange rates.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognised in profit or loss, unless they arise from the re-translation of the principal and
interest of specific borrowings for the acquisition and construction of qualifying assets.
Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date.
In translating the financial statements of a foreign operation, assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.
Equity items, excluding retained earnings and the translation differences in other
comprehensive income, are translated to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction dates. The resulting translation differences are
recognised in other comprehensive income. The translation differences accumulated in other
comprehensive income with respect to a foreign operation are transferred to profit or loss in
the period when the foreign operation is disposed.
5.9 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equity
securities other than those classified as long-term equity investments, receivables, payables,
loans and borrowings and share capital.
5.9.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognised in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
A financial assets (unless it is a trade receivable without a significant financing component)
and financial liabilities is measured initially at fair value. For financial assets and financial
liabilities at fair value through profit or loss, any related directly attributable transaction costs
are charged to profit or loss; for other categories of financial assets and financial liabilities,
any related directly attributable transaction costs are included in their initial costs. Accounts
receivable containing no significant financing component are measured initially at transaction
prices determined by the accounting policies set out in Note 5.22.
5.9.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. On initial recognition,
a financial asset is classified as measured at amortised cost, at fair value through other
comprehensive income (“FVOCI”), or at fair value through profit or loss (“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets in which case all affected financial
assets are reclassified on the first day of the first reporting period following the change in the
business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and
is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis. The
instrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI as described above
are measured at FVTPL. On initial recognition, the Group may irrevocably designate a
financial asset that otherwise meets the requirements to be measured at amortised cost or at
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
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that would otherwise arise.
The business model refers to how the Group manages its financial assets in order to generate
cash flows. That is, the Group’s business model determines whether cash flows will result
from collecting contractual cash flows, selling financial assets or both. The Group determines
the business model for managing the financial assets according to the facts and based on the
specific business objective for managing the financial assets determined by the Group’s key
management personnel.
In assessing whether the contractual cash flows are solely payments of principal and interest,
the Group considers the contractual terms of the instrument. For the purposes of this
assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.
‘Interest’ is defined as consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for
other basic lending risks and costs, as well as a profit margin. The Group also assesses
whether the financial asset contains a contractual term that could change the timing or amount
of contractual cash flows such that it would not meet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses, including
any interest or dividend income, are recognised in profit or loss unless the financial assets are
part of a hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method.
A gain or loss on a financial asset that is measured at amortised cost and is not part of a
hedging relationship shall be recognised in profit or loss when the financial asset is
derecognised, through the amortisation process or in order to recognise impairment gains or
losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the
effective interest method, impairment and foreign exchange gains and losses are recognised in
profit or loss. Other net gains and losses are recognised in other comprehensive income. On
derecognition, gains and losses accumulated in other comprehensive income are reclassified
to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in
profit or loss. Other net gains and losses are recognised in other comprehensive income. On
derecognition, gains and losses accumulated in other comprehensive income are reclassified
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to retained earnings.
5.9.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost by the Group.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss, unless the financial
liabilities are part of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective
interest method.
5.9.4 Offsetting
Financial assets and financial liabilities are generally presented separately in the balance sheet,
and are not offset. However, a financial asset and a financial liability are offset and the net
amount is presented in the balance sheet when both of the following conditions are satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；
- The Group intends either to settle on a net basis, or to realise the financial asset and settle
the financial liability simultaneously.
5.9.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or；
- the financial asset has been transferred, although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset, it does not retain
control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the
difference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and, when the transferred
financial asset is a debt investment at FVOCI, any cumulative gain or loss that has been
recognised directly in other comprehensive income for the part derecognised.
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The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part
of it) is extinguished.
5.9.6 Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- financial investments at fair value through other comprehensive income
Financial assets measured at fair value, including debt investments or equity securities at
FVPL, equity securities designated at FVOCI and derivative financial assets, are not subject
to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity
in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 months after the balance sheet date (or a shorter period if the expected life of the
instrument is less than 12 months).
For accounts receivable, loss allowance always measured at an amount equal to lifetime ECLs.
ECLs on these financial assets are estimated using a provision matrix based on the Group’s
historical credit loss experience, adjusted for factors that are specific to the debtors and an
assessment of both the current and forecast general economic conditions at the balance sheet
date.
For assets other than accounts receivable that meet one of the following conditions, loss
allowance are measured at an amount equal to 12-month ECLs. For all other financial
instruments, the Group recognises a loss allowance equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.
Financial instruments that have low credit risk
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The credit risk on a financial instrument is considered low if the financial instrument has a
low risk of default, the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and adverse changes in economic and business conditions in the
longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since
initial recognition, the Group compares the risk of default occurring on the financial
instrument assessed at the balance sheet date with that assessed at the date of initial
recognition.
When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating ECL, the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort, including
forward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological, market, economic or legal environment
that have a significant adverse effect on the debtor’s ability to meet its obligation to the
Group.
Depending on the nature of the financial instruments, the assessment of a significant increase
in credit risk is performed on either an individual basis or a collective basis. When the
assessment is performed on a collective basis, the financial instruments are grouped based on
shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at amortised
cost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract, such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty, the
Group having granted to the borrower a concession that would not otherwise consider;
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- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial
difficulties.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is recognised
as an impairment gain or loss in profit or loss. The Group recognises an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account, except for debt investments that are measured at FVOCI,
for which the loss allowance is recognised in other comprehensive income.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However, financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of
amounts due.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
5.9.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
recognised in shareholders’ equity. Consideration and transaction costs paid by the Company
for repurchasing self-issued equity instruments are deducted from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasury shares. All
expenditure relating to the repurchase is recorded in the cost of the treasury shares, with the
transaction recording in the share register. Treasury shares are excluded from profit
distributions and are presented as a deduction under shareholders’ equity in the balance sheet.
5.10 Inventories
5.10.1 Classification and cost
Inventories include raw materials, work in progress and reusable materials. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase, costs of
conversion and other expenditure incurred in bringing the inventories to their present location
and condition. In addition to the purchase cost of raw materials, work in progress and finished
goods include direct labour costs and an appropriate allocation of production overheads.
Agricultural products harvested are reported in accordance with the Accounting Standard for
Business Enterprises No. 1 - Inventories.
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5.10.2 Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are amortised when
they are used. The amortisation charge is included in the cost of the related assets or
recognised in profit or loss for the current period.
5.10.3 Basis for determining the net realisable value and method for provision for
obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant
taxes. The net realisable value of materials held for use in the production is measured based
on the net realisable value of the finished goods in which they will be incorporated. The net
realisable value of the inventory held to satisfy sales or service contracts is measured based on
the contract price, to the extent of the quantities specified in sales contracts, and the excess
portion of inventories is measured based on general selling prices.
Any excess of the cost over the net realisable value of each item of inventories is recognised
as a provision for impairment, and is recognised in profit or loss.
5.10.4 Inventory count system
The Group maintains a perpetual inventory system.
5.11 Long-term equity investments
5.11.1 Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination
involving entities under common control is the Company’s share of the carrying amount of
the subsidiary’s equity in the consolidated financial statements of the ultimate controlling
party at the combination date. The difference between the initial investment cost and the
carrying amount of the consideration given is adjusted to the share premium in the capital
reserve, with any excess adjusted to retained earnings. For a long-term equity investment in a
subsidiary acquired through a business combination achieved in stages which do not form a
bundled transaction and involving entities under common control, the Company determines
the initial cost of the investment in accordance with the above policies. The difference
between this initial cost and the sum of the carrying amount of previously-held investment
and the consideration paid for the shares newly acquired is adjusted to capital premium in the
capital reserve, with any excess adjusted to retained earnings.
- For a long-term equity investment obtained through a business combination not involving
enterprises under common control, the initial cost comprises the aggregate of the fair value of
assets transferred, liabilities incurred or assumed, and equity securities issued by the Company,
in exchange for control of the acquiree. For a long-term equity investment obtained through a
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business combination not involving entities under common control and achieved through
multiple transactions in stages which do not form a bundled transaction, the initial cost
comprises the carrying amount of the previously-held equity investment in the acquiree
immediately before the acquisition date, and the additional investment cost at the acquisition
date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is
initially recognised at the amount of cash paid if the Group acquires the investment by cash,
or at the fair value of the equity securities issued if an investment is acquired by issuing
equity securities.
5.11.2 Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in subsidiaries
are accounted for using the cost method unless the investment is classified as held for sale.
Except for cash dividends or profit distributions declared but not yet distributed that have
been included in the price or consideration paid in obtaining the investments, the Company
recognises its share of the cash dividends or profit distributions declared by the investee as
investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less accumulated
impairment losses.
For the impairment of the investments in subsidiaries, refer to Note 5.20.
In the Group’s consolidated financial statements, subsidiaries are accounted for in accordance
with the policies described in Note 5.6.
(b) Investments in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control and
rights to the net assets of the arrangement.
An associate is an enterprise the Group can exert significant influence on.
A long-term equity investment in a joint venture and associate is accounted for using the
equity method for subsequent measurement, unless the investment is classified as held for
sale.
The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in the
fair value of the investee’s identifiable net assets at the date of acquisition, the investment is
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initially recognised at cost. Where the initial investment cost is less than the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition, the
investment is initially recognised at the investor’s share of the fair value of the investee’s
identifiable net assets, and the difference is recognised in profit or loss.
- After the acquisition of the investment in joint ventures and associates, the Group
recognises its share of the investee’s profit or loss and other comprehensive income as
investment income or losses and other comprehensive income respectively, and adjusts the
carrying amount of the investment accordingly. Once the investee declares any cash dividends
or profit distributions, the carrying amount of the investment is reduced by the amount
attributable to the Group. Changes in the Group’s share of the investee’s owners’ equity, other
than those arising from the investee’s net profit or loss, other comprehensive income or profit
distribution (referred to as “other changes in owners’ equity”), is recognised directly in the
Group’s equity, and the carrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive income
and other changes in owners’ equity, the Group recognises investment income and other
comprehensive income after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair value of the investee’s
identifiable net assets at the date of acquisition. Unrealised profits and losses resulting from
transactions between the Group and its associates or joint ventures are eliminated to the extent
of the Group’s interest in the associates or joint ventures. Unrealised losses resulting from
transactions between the Group and its associates or joint ventures are eliminated in the same
way as unrealised gains but only to the extent that there is no impairment.
- The Group discontinues recognising its share of further losses of the investee after the
carrying amount of the long-term equity investment and any long-term interest that in
substance forms part of the Group’s net investment in the associate is reduced to zero, except
to the extent that the Group has an obligation to assume additional losses. If the joint venture
or the associate subsequently reports net profits, the Group resumes recognising its share of
those profits only after its share of the profits equals the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to Note 5.20.
5.11.3 Criteria for determining the existence of joint control and significant impact over
an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group can exercise
joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related
activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.
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Significant influence is the power to participate in the financial and operating policy decisions
of an investee but does not have control or joint control over those policies.
5.12 Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation, amortisation and impairment
losses, and adopts a depreciation or amortisation policy for the investment property which is
consistent with that for buildings or land use rights, unless the investment property is
classified as held for sale. For the impairment of the investment properties, refer to Note 5.20.
Estimated useful life Residual value Annual depreciation
Category
(years) rate (%) rate (%)
Plant and buildings 20-40 years 0 - 5% 2.4%-5.0%
5.13 Fixed assets
5.13.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods,
supply of services, for rental or for administrative purposes with useful lives over one
accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any
directly attributable expenditure for bringing the asset to working condition for its intended
use. The cost of self-constructed assets is measured in accordance with the policy set out in
Note 5.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits to the
Group in a different pattern, thus necessitating use of different depreciation rates or methods,
each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets are
recognised as assets when it is probable that the economic benefits associated with the costs
will flow to the Group, and the carrying amount of the replaced part is derecognised. The
costs of the day-to-day maintenance of fixed assets are recognised in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
5.13.2 Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairment losses,
is depreciated using the straight-line method over its estimated useful life, unless the fixed
asset is classified as held for sale.
The estimated useful lives, residual value rates and annual depreciation rates of each class of
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fixed assets are as follows:
Estimated useful Residual value Annual depreciation
Class
life (years) rate (%) rate (%)
Plant and buildings 20-40 years 0 - 5% 2.4%-5.0%
Machinery equipment 5-30 years 0 - 5% 3.2%-20.0%
Motor vehicles 4-12 years 0 - 5% 7.9%-25.0%
Useful lives, estimated residual values and depreciation methods are reviewed at least at each
year-end.
5.13.3 For the impairment of the fixed assets, refer to Note 5.20.
5.13.4 Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are determined
as the difference between the net disposal proceeds and the carrying amount of the item, and
are recognised in profit or loss on the date of retirement or disposal.
5.14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalised
borrowing costs, and any other costs directly attributable to bringing the asset to working
condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixed asset
when it is ready for its intended use. No depreciation is provided against construction in
progress.
Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note 5.20).
5.15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, and construction or
production of a qualifying asset are capitalised as part of the cost of the asset. Other
borrowing costs are recognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction or production
of a qualifying asset, the amount of interest to be capitalised is the interest expense calculated
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using effective interest rates during the period less any interest income earned from depositing
the borrowed funds or any investment income on the temporary investment of those funds
before being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction or production of a qualifying asset, the amount of borrowing costs eligible
for capitalisation is determined by applying a capitalisation rate to the weighted average of the
excess amounts of cumulative expenditure on the asset over the above amounts of specific
borrowings. The capitalisation rate is the weighted average of the interest rates applicable to
the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or, when appropriate, a shorter period to
the initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and interest on a
specific-purpose borrowing denominated in foreign currency are capitalised as part of the cost
of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognised as a
financial expense when incurred.
The capitalisation period is the period from the date of commencement of capitalisation of
borrowing costs to the date of cessation of capitalisation, excluding any period over which
capitalisation is suspended. Capitalisation of borrowing costs commences when expenditure
for the asset is being incurred, borrowing costs are being incurred and activities of acquisition,
construction or production that are necessary to prepare the asset for its intended use are in
progress, and ceases when the assets become ready for their intended use. Capitalisation of
borrowing costs should cease when the qualifying asset being constructed or produced has
reached its expected usable or saleable condition. Capitalisation of borrowing costs is
suspended when the acquisition, construction or production activities are interrupted
abnormally for a period of more than three months.
5.16 Biological assets
The biological assets of the Group are productive biological assets.
Bearer biological assets are those that are held for the purposes of producing agricultural
produce, rendering of services or rental. Bearer biological assets in the Group are vines.
Bearer biological assets are initially measured at cost. The cost of self-grown or self-bred
bearer biological assets represents the necessary directly attributable expenditure incurred
before satisfying the expected production and operating purpose, including capitalised
borrowing costs.
Bearer biological assets, after reaching the expected production and operating purpose, are
depreciated using the straight-line method over its estimated useful life. The estimated useful
lives, estimated net residual value rates and annual depreciation rates of bearer biological
assets are as follows:
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Category Useful life (years) Estimated net residual rate (%) Annual depreciation rate (%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net salvage value by considering the normal
producing life of the bearer biological assets.
Useful lives, estimated residual values and depreciation methods of bearer biological assets
are reviewed at least at each year-end. Any changes should be treated as changes in
accounting estimates.
For a bearer biological asset that has been sold, damaged, dead or destroyed, any difference
between the disposal proceeds and the carrying amount of the asset (after tax deduction)
should be recognised in profit or loss for the period in which it arises.
5.17 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where
the estimated useful life is finite) and impairment losses (see Note 5.20). For an intangible
asset with finite useful life, its cost estimated less residual value and accumulated impairment
losses is amortised on the straight-line method over its estimated useful life, unless the
intangible asset is classified as held for sale.
The respective amortisation periods for intangible assets are as follows:
Item Amortisation period (years)
Land use rights 40-50 years
Software licenses 5-10 years
Trademark 10 years
An intangible asset is regarded as having an indefinite useful life and is not amortised when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date, the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group’s acquisition of
Via Indómita, S.A., Via Dos Andes, S.A., and Bodegas Santa Alicia SpA. (collectively
referred to as the “Chile Indomita Wine Group”), and the acquisition of Kilikanoon Estate Pty
Ltd.( hereinafter referred to as the “Australia Kilikanoon Estate”), therefore there was no
amortisation. The right to use trademark refers to the trademark held by the Group arising
from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate
with infinite useful lives. The valuation of trademark was based on the trends in the market
and competitive environment, product cycle, and managing long-term development strategy.
Those bases indicated the trademark will provide net cash flows to the Group within an
uncertain period. The useful life is indefinite as it was hard to predict the period that the
trademark would bring economic benefits to the Group.
5.18 Goodwill
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The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.20). On disposal of an asset group or a set of asset groups, any
attributable goodwill is written off and included in the calculation of the profit or loss on
disposal.
5.19 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit
period. The respective amortisation periods for such expenses are as follows:
Item Amortisation period
Land requisition fee 50 years
Land lease fee 50 years
Greening fee 5-20 years
Renovation fee 3-5 years
Others 3 years
5.20 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based on
internal and external sources of information to determine whether there is any indication of
impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- Bearer biological assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, the
Group estimates the recoverable amounts of goodwill and intangible assets with infinite
useful lives at each year-end, irrespective of whether there is any indication of impairment.
Goodwill is allocated to each asset group, or set of asset groups, that is expected to benefit
from the synergies of the combination for the purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its fair
value (see Note 5.21) less costs to sell and its present value of expected future cash flows.
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An asset group is composed of assets directly related to cash-generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting the
future cash flows, estimated to be derived from continuing use of the asset and from its
ultimate disposal, to their present value using an appropriate pre-tax discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognised
accordingly. Impairment losses related to an asset group or a set of asset groups are allocated
first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups, and then to reduce the carrying amount of the other assets in the asset group or set of
asset groups on a pro rata basis. However, such allocation would not reduce the carrying
amount of an asset below the highest of its fair value less costs to sell (if measurable), its
present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
5.21 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particular
asset or liability (including the condition and location of the asset and restrictions, if any, on
the sale or use of the asset) that market participants would consider when pricing the asset or
liability at the measurement date, and uses valuation techniques that are appropriate in the
circumstances and for which sufficient data and other information are available to measure
fair value. Valuation techniques mainly include the market approach, the income approach
and the cost approach.
5.22 Revenue
Revenue refers to the gross inflow of economic benefits formed during the course of the
ordinary activities of the Group, which may increase the shareholders’ equities and is
irrelevant to the invested capital of the shareholders.
The Group recognizes the revenue upon fulfillment of its performance obligations in the
contract, that is, the client obtains control right over the relevant goods or services.
If there are two or more performance obligations under the contact, which shall be fulfilled,
the Group will apportion the transaction price to various individual performance obligations
in accordance with the relative proportion of separate selling prices of various goods or
services under these performance obligations on the commencement date of the contract, and
measure and recognize the revenue in accordance with the transaction prices apportioned to
various individual performance obligations. The stand-alone selling price refers to the price at
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which the Group sells goods or provides services to customers separately. If the stand-alone
selling price cannot be directly observed, the Group comprehensively considers all the
relevant information that can be reasonably obtained, and uses observable input values to the
greatest extent to estimate the stand-alone selling price.
For contracts with quality assurance clauses, the Group analyzes the nature of the quality
assurance provided. If quality assurance provides a separate service in addition to ensuring to
the client that the goods sold meet the established standards, the Group will treat it as an
individual performance obligation. Otherwise, the Group conducts accounting treatment in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.
The transaction price refers to the amount of consideration that the Group expects to be
entitled to receive due to the transfer of goods or services to the client, excluding payments
received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount at which the accumulated recognized revenue will most likely not undergo
a significant reversal when the relevant uncertainty is eliminated. In the event that there is a
significant financing part in the contract, the Group determines the transaction price based on
the amount payable in cash when the client obtains control right over the relevant goods or
services. The difference between the transaction price and the contract consideration shall be
amortized by the effective interest method during the contract period. From the day of the
enforcement of the contract, the Group expects that the interval between the client's
acquisition of control right over the goods or services and the client’s payment of the price
will not exceed one year, regardless of the significant financing part in the contract.
If the Group meets one of the following conditions, the fulfillment of its performance
obligations in a certain period will be deemed, or the fulfillment of its performance
obligations at a certain time point will be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills the
performance obligation;
- The client manages to control the goods in process while the Group fulfills the
performance obligation.
- Goods produced during the performance period have irreplaceable purposes and the
Group is entitled to charge money for the performance accumulated and has been finished
until the current time within the whole contract period.
For any performance obligations fulfilled in a certain period, the Group will recognize
revenue within the certain period in accordance with the performance progress. If the
performance progress cannot be determined reasonably and costs incurred are expected to be
compensated of the Group, the revenue will be ascertained according to the costs incurred
until the performance progress is determined reasonably.
In terms of performance obligations fulfilled at a certain time point, the Group will recognize
revenue when the client gains control right over the relevant goods or services. When it comes
to determining whether a client has acquired the control right over goods or services, the
Group will consider the following conditions:
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- The Group has the current right to receive payment for the goods or services;
- The Group has transferred the goods in kind to the client;
- The Group has transferred the legal ownership of the product or the main risks and
rewards of ownership to the client;
- The client has accepted the goods or services, etc.
For sales with sales return clauses, when the customer obtains control of the relevant goods,
the Group recognizes revenue based on the amount of consideration expected to be entitled to
receive due to the transfer of goods to the customer (that is, does not include the expected
amount to be refunded due to sales return), and recognizes liabilities based on the expected
amount to be refunded due to sales returns. At the same time, based on the book value at the
time of transfer of the goods expected to be returned, the Group recognizes as an asset the
balance after deducting the estimated cost of recovering the goods (including the value
impairment of the returned goods). Based on the book value of the transferred goods at the
time of transfer, the Group carries over as the cost the net amount after deducting the above
asset cost. On each balance sheet date, the Group re-estimates the future sales returns. If there
is any change, it shall be treated as a change in accounting estimates.
The Group has transferred the goods or services to the client and thus has the right to receive
corresponding consideration (and the right is dependable on factors other than time lapses) as
contract asset, which is subject to provision of impairment on the basis of expected credit loss.
The right enjoyed by the Group (only depends on time lapses) to receive consideration
unconditionally from the client shall be presented under account receivables. The Group
presents the obligation of transferring goods or services for the client due to the consideration
received or receivable as contract liabilities.
The specific accounting policies related to the main activities of the Group’s revenue are
described as follows:
The Group’s sales revenue mainly comes from dealer sales. The revenue will be recognized
when the Group transfers control of the related products to the customer. According to the
business contract, for these transfers, the time when the product is confirmed and signed by
the customer shall be recognized as the confirming point of the sales revenue.
5.23 Contract cost
Contract cost includes incremental cost for being awarded the contract and performance cost
of the contract.
Incremental cost for being awarded the contract refers to the cost that the Group would not
need to pay if no such contracts are awarded (e.g. sales commissions, etc.). Where such cost is
expected to be recovered, the Group shall take it as the contract acquisition cost and recognize
it as an asset. Expenses incurred by the Group to be awarded contracts other than incremental
cost expected to be recovered shall be recognized in current profits and losses when incurred.
Any cost incurred by the Group for the performance of any contract that doesn't fall into the
scope of other businesses specified in the Standard such as inventory, but meets the following
conditions simultaneously, shall be taken as contract performance cost and recognized as an
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asset.
– Where such cost is directly related to a current or anticipated contract, including direct
labor cost, direct material cost, manufacturing expenses (or similar expenses), costs clearly
specified to be borne by the customer and other costs incurred solely due to the contract;
– Where such cost includes resources to be used by the Group to fulfill future performance
obligations;
– Where such cost is expected to be recovered.
Assets recognized for contract acquisition cost and assets recognized for contract performance
cost (hereinafter referred to as “assets related to contract cost”) shall be amortized on the same
basis as the revenue recognition of goods or services related to such assets and recognized in
current profits and losses. Where the amortization period of assets recognized for the contract
acquisition cost does not exceed one year, they shall be recognized in current profits and
losses.
Where the book value of assets related to contract costs is higher than the difference between
the following two items, the Group shall withdraw the impairment reserves of the excess part
and recognize it as the asset impairment loss:
– Residual consideration expected to be obtained arising from the transfer of goods or
services related to the assets by the Group;
– Cost estimated to be occurred for the transfer of the relevant goods or services.
5.24 Employee benefits
5.24.1 Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical insurance,
work injury insurance, maternity insurance and housing fund, measured at the amount
incurred or accured at the applicable benchmarks and rates, are recognised as a liability as the
employee provides services, with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
5.24.2 Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Group
participated in a defined contribution basic pension insurance plan in the social insurance
system established and managed by government organisations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognised
as a liability as the employee provides services, with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
5.24.3 Termination benefits
When the Group terminates the employment with employees before the employment contracts
expire, or provides compensation under an offer to encourage employees to accept voluntary
redundancy, a provision is recognised with a corresponding expense in profit or loss at the
earlier of the following dates:
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- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry out
the restructuring by starting to implement that plan or announcing its main features to those
affected by it.
5.25 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the
government to the Group except for capital contributions from the government in the capacity
as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase, construct or otherwise acquire long-term assets.
Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognised as deferred income and amortised over the
useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Company for expenses or losses to be
incurred in the future is recognised as deferred income, and included in other income or
non-operating income in the periods in which the expenses or losses are recognised, or
included in other income or non-operating income directly.
5.26 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination or items recognised directly in equity (including other
comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year, plus any adjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively, being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases, which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognised to the extent that it is probable that future taxable profits will be available against
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which deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is not
recognised for taxable temporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences that would
follow from the expected manner of recovery or settlement of the carrying amounts of the
assets and liabilities, using tax rates enacted at the balance sheet date that are expected to be
applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilised.
Such reduction is reversed to the extent that it becomes probable that sufficient taxable profits
will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of the
following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either: the same taxable
entity; or different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis, or to realise the assets and settle the liabilities simultaneously,
in each future period in which significant amounts of deferred tax liabilities or deferred tax
assets are expected to be settled or recovered.
5.27 Lease
Lease refers to a contract in which it is agreed that the lessor conveys the use right of any
asset to the lessee for a period of time in exchange for consideration.
On the contract start date, the Group shall evaluate whether the contract is, or contains, a lease.
Where either party thereto conveys the right to control the use of one or more identified assets
for a period of time in exchange for consideration, the contract is, or contains a lease.
To determine whether the contract conveys the right to control the use of identified assets for
a period of time, the Group conducts the following assessments:
- Whether the contract involves the use of an identified asset. An identified asset can be
either explicitly specified in a contract, or implicitly when the asset is available to the
customer and can be a physically distinct portion, or if some capacity or other portion of the
asset is not physically distinct but substantially represents the full capacity of the asset, so that
the customer obtains substantially all of the economic benefits from the use of the asset. If the
supplier of the asset has the practical ability to substitute the asset throughout the period of
use, the asset is not an identified asset;
- Whether the lessee has the right to obtain substantially all of the economic benefits from
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the use of the identified asset throughout the period of use; and
- Whether the lessee has the right to direct the use of an identified asset throughout this
period of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor will
split the contract and have each separate lease separately subject to accounting treatment. If
the contract includes lease and non-lease parts at the same time, the lessee and the lessor will
split them separately. When splitting the lease and non-lease parts included in the contract, the
lessee shall allocate the contract consideration according to the relative proportion of the sum
of the stand-alone price of each lease part and the stand-alone price of each non-lease part.
The lessor shall allocate the contract consideration in accordance with the provisions on
transaction price allocation in the accounting policy stated in Note 5.22.
5.27.1 Where the Group is the lessee
Upon the commencement of the lease term, the Group recognizes right-of-use assets and lease
liabilities for leases. The right-of-use assets are initially measured at cost, including initially
measured amount of leased liability; amount of lease payments made on or before the
commencement date of the lease term (the related amount of lease incentive having been
enjoyed shall be deducted); initial direct costs incurred and costs that the Group expects to
incur to disassemble and remove leased assets, restore the site where leased assets are located
or restore leased assets to the agreed condition under the terms of the lease.
The Group employs the straight-line method to depreciate right-of-use assets. Where it can be
reasonably recognized that the ownership of leased assets will be obtained by the Group upon
expiration of the lease term, leased assets will be depreciated during the service life; otherwise,
leased assets will be depreciated during the lease term or the remaining service life of such
leased assets by the Group, whichever is shorter. Right-of-use assets shall be provided for
impairment in accordance with the accounting policies stated in Note 5.20.
When initially calculating the present value of the unpaid lease payment at the
commencement date of the lease term, the Group shall employ the interest rate implicit in the
lease as the discount rate; where the interest rate implicit in the lease cannot be determined,
the incremental lending rate of the Group shall be used as the discount rate.
The Group calculates the interest expense of lease liabilities in each period of the lease term
according to a fixed periodic rate, which will be included in current profits and losses or asset
cost. The variable lease payment not included in the measurement of lease liabilities shall be
recognized in current profits and losses and loss or related asset cost when they actually occur.
In case of any of following circumstances after the commencement date of the lease term, the
Group will remeasure lease liabilities at the present value of the lease payment after any
change:
– Where the amount payable anticipated changes according to the guaranteed residual
value;
– Where the index or ratio used for recognizing the lease payment changes;
– Where there is a change in the Group's assessment results of the option of purchase,
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renewal option or option of termination of lease or the actual exercising of the termination of
the renewal option or option of termination of lease is inconsistent with the original
assessment result.
When the Group remeasures lease liabilities, the book value of right-of-use assets shall be
adjusted accordingly. Where the book value of right-of-use assets has been reduced to zero,
but lease liabilities still need to be subject to further reduction, the remaining amount shall be
recognized in current profits and losses.
The Group does not recognize right-of-use assets and leased liabilities for short-term lease
(lease with a lease term within 12 months) and lease of low-value assets. The Group shall
include related lease payment into the current profits and losses or relevant asset costs
according to the straight-line method in each period of the lease term.
5.27.2 The Group as the lessor
From the inception of lease, the Group will divide leases into finance lease and operating
lease. Finance lease refers to a lease in which almost all the risks and returns related to the
ownership of the leased asset are essentially transferred, regardless of whether the ownership
is finally transferred or not. Operating lease refers to other leases except for the finance lease.
When the Group is the sublease lessor, the sublease shall be classified based on the
right-of-use assets arising from the original lease rather than the underlying assets of the the
original lease. If the original lease is a short-term lease and the Group elects to apply the
above-mentioned simplified treatment of short-term lease to the original lease, the Group
shall classify the sublease as an operating lease.
For finance leases, from the commencement date of the lease term, the Group recognizes
finance lease receivables for finance leases and derecognizes the finance lease assets. The
Group regards the net investment in a lease as the entry value of finance lease receivables at
the time of initial measurement of finance lease receivables. The net investment in a lease is
the sum of the present value of unguaranteed residual value and rental receipts not received
yet on the commencement date of the lease term which is subject to discounting at the interest
rate implicit in the lease term.
The Group calculates and recognizes the interest income in each period within the lease term
according to a fixed periodic rate. Derecognition and impairment of finance lease receivables
shall be subject to accounting treatment in accordance with the accounting policies stated in
Note 5.9. The variable lease payment which is not included in the net investment in a lease,
shall be recognized in current profits and losses when it actually occurs.
During each period of the lease term, the Group recognizes lease receipts from operating
leases as rental revenue by using the straight-line method. The Group capitalizes initial direct
costs pertaining to operating leases upon their occurrence, and apportions them as per the
same basis used for recognizing the rental income within the lease term and includes them in
current profits and losses by period. The variable lease receipts related to operating leases that
are not included in the lease receipts shall be recognized in current profits and losses when
they actually occur. The variable lease payment which is not included in the lease receipts,
shall be recognized in current profits and losses when it actually occurs.
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5.28 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carrying
amount of a non-current asset or disposal group will be recovered through a sale transaction
rather than through continuing use.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together as
a whole in a single transaction and liabilities directly associated with those assets that will be
transferred in the transaction.
A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions, the non-current asset or disposal group must be available for immediate sale in
their present condition subject to terms that are usual and customary for sales of such assets or
disposal groups;
- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has
obtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amount
and fair value less costs to sell (except financial assets, deferred tax assets and investment
properties subsequent measured at fair value initially and subsequently. Any excess of the
carrying amount over the fair value less costs to sell is recognised as an impairment loss in
profit or loss.
5.29 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be
approved after the balance sheet date, are not recognised as a liability at the balance sheet date
but are disclosed in the notes separately.
5.30 Related parties
If a party has the power to control, jointly control or exercise significant influence over
another party, or vice versa, or where two or more parties are subject to common control or
joint control from another party, they are considered to be related parties. Related parties may
be individuals or enterprises. Enterprises with which the Company is under common control
only from the State and that have no other related party relationships are not regarded as
related parties.
In addition to the related parties stated above, the Group determines related parties based on
the disclosure requirements of Administrative Procedures on the Information Disclosures of
Listed Companies issued by the CSRC.
5.31 Segment reporting
The Group is principally engaged in the production and sales of wine, brandy, and sparkling
wine in China, France, Spain, Chile and Australia. In accordance with the Group's internal
organisation structure, management requirements and internal reporting system, the Group's
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operation is divided into four parts: China, Spain, France, Chile and Australia. The
management periodically evaluates segment results, in order to allocate resources and
evaluate performances. In 2022, over 86% of revenue, more than 98% of profit and over 98%
of non-current assets derived from China / are located in China. Therefore the Group does not
need to disclose additional segment report information.
5.32 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
5.32.1 Significant accounting estimates
Except for accounting estimates relating to depreciation and amortisation of assets such as
investment properties, fixed assets, bearer biological assets and intangible assets (see Notes
5.12, 13, 16 and 17) and provision for impairment of various types of assets (see Notes 7.3, 6,
7, 11, 12, 13, 14, 15 and Notes 16.2). Other significant accounting estimates are as follows:
(i) Note 7.18 – Recognition of deferred tax asset;
(ii) Note 10 – Fair value measurements of financial instruments.
5.33 Changes in significant accounting policies and accounting estimates
5.33.1 Changes in significant accounting policies
Nil
5.33.2 Changes in significant accounting estimates
Nil
6. Taxes
6.1 The main taxes and tax rates are as follows:
Tax category Taxation basis Tax rates
Levied on the balance between the
13%, 9%, 6% (China), 20% (France),
output tax calculated based on taxable
Value added tax 21% (Spain), 19% (Chile), 10%
income and the input tax allowed to be
(Australia)
deducted in current period
10% of the price, 20% of the price and
Consumption tax Levied on taxable income
1,000 Yuan each ton (China)
City development tax Levied on circulation tax actually paid 7% (China)
25% (China), 25% (France 2022),
Corporate income tax Levied on taxable income 26.5% (France 2021), 28% (Spain),
27% (Chile), 30% (Australia)
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”), a subsidiary of the Group,
whose principal activity is grape growing, is incorporated in Ningxia Huizu Autonomous
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Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC
Corporate Income Tax Measures for Implementation, Ningxia Growing enjoys an exemption
of corporate income tax.
Yantai Changyu Grape Growing Co., Ltd. (“Grape Growing”), a branch of the Company,
whose principal activity is grape growing, is incorporated in Zhifu District, Yantai City,
Shandong Province. According to clause 27 of PRC Corporate Income Tax and clause 86 of
PRC Corporate Income Tax Measures for Implementation, Grape Growing enjoys an
exemption of corporate income tax.
Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co., Ltd. (“R&D
and Growing”), a branch of the Company, whose principal activity is grape growing, is
incorporated in YEDA, Shandong Province. According to Clause 27 of PRC Corporate
Income Tax and Clause 86 of PRC Corporate Income Tax Measures for Implementation, R&D
and Growing enjoys an exemption of corporate income tax.
Beijing Changyu AFIP Agriculture Development Co., Ltd (“Agriculture Development”), a
subsidiary of the Group, whose principal activity is grape growing, is incorporated in Miyun
County, Beijing. According to clause 27 of the Corporate Income Tax Law of the People’s
Republic of China and clause 86 of the Implementation Rules of Enterprise Income Tax Law
of the People’s Republic of China, Agriculture Development enjoys an exemption of corporate
income tax.
Xinjiang Tianzhu Co., Ltd (“Xinjiang Tianzhu”), a subsidiary of the Company, is an enterprise
of raw wine production and sales incorporated in Shihezi City, Xinjiang Uygur Autonomous
Region. In accordance with the Announcement on Continuing the Enterprise Income Tax
Policies for the Large-Scale Development of Western China of the Ministry of Finance, the
State Taxation Administration and the National Development and Reform Commission
(Announcement No. 23 [2020] of the Ministry of Finance), Xinjiang Tianzhu is qualified to
enjoy preferential taxation policies, which means it can pay corporate income tax at a
preferential rate of 15% for the period from 2021 to 2030.
Xinjiang Babao Baron Chateau Co., Ltd. (“Shihezi Chateau”), a subsidiary of the Company, is
an enterprise of raw wine production and sales incorporated in Shihezi City, Xinjiang Uygur
Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income
Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance,
the State Taxation Administration and the National Development and Reform Commission
(Announcement No. 23 [2020] of the Ministry of Finance), Shihezi Chateau is qualified to
enjoy preferential taxation policies, which means it can pay corporate income tax at a
preferential rate of 15% for the period from 2021 to 2030.
Ningxia Changyu Longyu Estate Co., Ltd. (previous name: Chateau Changyu Moser XV
Co., Ltd., Ningxia, referred to as “Ningxia Chateau”), a subsidiary of the Company, is an
enterprise of wine production and sales incorporated in Yinchuan City, Ningxia Huizu
Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income
Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance,
the State Taxation Administration and the National Development and Reform Commission
(Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Chateau is qualified to
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enjoy preferential taxation policies, which means it can pay corporate income tax at a
preferential rate of 15% for the period from 2021 to 2030.
Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”), a subsidiary of the Company, is an
enterprise of wine production and sales incorporated in Yinchuan City, Ningxia Huizu
Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income
Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance,
the State Taxation Administration and the National Development and Reform Commission
(Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Wine is qualified to enjoy
preferential taxation policies, which means it can pay corporate income tax at a preferential
rate of 15% for the period from 2021 to 2030.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Implementing the Preferential Income Tax Policies for
Micro and Small Enterprises (Announcement No. 13 of [2022] of the Ministry of Finance and
the State Taxation Administration), the annual taxable income of a small low-profit enterprise
that is not less than 1 Million Yuan and not more than 3 Million Yuan shall be included in its
taxable income at the reduced rate of 25%, with the applicable enterprise income tax rate of
20%. Beijing Changyu Wine Industry Marketing Co., Ltd (“Beijing Allotting”), a subsidiary
of the Group, has been identified as eligible small low-profit enterprise.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Exempting Small-Scale Value-Added Tax Taxpayers from
Value-Added Tax (Announcement No. 15 of [2022] of the Ministry of Finance and the State
Taxation Administration), small-scale VAT taxpayers with taxable sales income subject to a
3% tax rate are exempted from VAT payment from April 1 to December 31, 2022. Xinjiang
Changyu Sales Co., Ltd., a subsidiary of the Group, has enjoyed this exemption policy.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Strengthening the Implementation of the Policies
Regarding the Refund of Term-End Excess Input Value-Added Tax Credits (Announcement No.
14 of [2022] of the Ministry of Finance and the State Taxation Administration), it will further
strengthen the implementation of the refund of term-end excess input value-added tax credits
and expand the industry scope of the policy of fully refunding the excess input value-added
tax credits. This Company and eligible subsidiaries have enjoyed the refund of term-end
excess input value-added tax credits.
According to the Announcement of the Ministry of Finance and the State Taxation
Administration on Further Implementing the “Six Taxes and Two Fees” Reduction and
Exemption Policies for Micro and Small Enterprises (Announcement No. 10 of [2022]), as
determined by the people’s government of a province, autonomous region, or municipality
directly under the Central Government in light of the actual circumstances of the local region,
from January 1, 2022 to December 31, 2024, a small-scale VAT taxpayer, a small low-profit
enterprise or an individual industrial and commercial household may be pay resource tax,
urban maintenance and construction tax, property tax, urban land use tax, stamp tax
(excluding securities trading stamp tax), farmland occupation tax, educational surtax, or local
education surcharges at the reduced tax rate of 50% or less. Shandong, Xinjiang, Ningxia,
Shaanxi and other provinces (autonomous regions and municipalities) have reduced the “six
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
taxes and two fees” by 50%, and some of the Company’s subsidiaries are eligible for the
reduction.
According to the provisions of the Notice of Shaanxi Provincial Finance Department and
Shaanxi Provincial Tax Service, State Taxation Administration on Clarifying the Relevant
Issues Concerning the Reduction and Exemption of Urban Land Use Tax and Property Tax for
Difficulty in Tax Payment in the First Quarter of 2022 (Shaan Cai Shui [2022] No. 6), if the
taxpayer is affected by the epidemic with sales in the first quarter of 2022 have fallen by more
than 30% (inclusive) year-on-year or month-on-month, and has indeed difficult to pay urban
land use tax and property tax, the finance and taxation department shall approve taxpayer’s
application for reduction or exemption for difficulty in tax payment. Shaanxi Chateau
Changyu Rena Co., Ltd. and Changyu (Jingyang) Wine Co., Ltd., both subsidiaries of the
Company, have met the application conditions, and property tax and urban land use tax have
been reduced or exempted in the first quarter of 2022.
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 64,720 71,486
Bank deposit 1,896,192,608 1,558,134,072
Other monetary capital 8,685,297 8,890,435
Total 1,904,942,625 1,567,095,993
Including: Total overseas deposits 24,435,576 28,691,521
Total amount of funds that
have restrictions on use due to 11,363,826.00 11,568,964.00
mortgages, pledges, or freezes
As at June 30, 2022, the restricted bank deposit details are listed as follows:
Unit: Yuan
Item Ending balance Beginning balance
Housing fund of the unit 2,678,529 2,678,529
Total 2,678,529 2,678,529
As at June 30, 2022, the details of other monetary funds are listed as follows:
Unit: Yuan
Item Ending balance Beginning balance
Guaranteed deposits paid for the letter of credit 7,900,850 7,900,850
Account balance of Alipay 774,447 859,558
Guaranty money for ICBC platform 10,000 10,000
Guaranty money for customs 120,027
Total 8,685,297 8,890,435
As at June 30, 2022, the bank deposits of the Group including short-term fixed deposits
ranging from 3 months to 12 months and Renminbi amounted to 53,721,866 Yuan (including
interest receivable of 521,866 Yuan), with the interest rates ranging from 1.75% to 2.25%
(December 31, 2021: RMB 53,200,000 Yuan).
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
7.2 Bills receivable
Classification of bills receivable
Item Ending balance Beginning balance
Bank acceptance bills 400,000 42,827,666
Total 400,000 42,827,666
The above bills receivable are all due within one year.
7.3 Accounts receivable
7.3.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Provision for bad Provision for bad
Type Book balance Book balance
debts debts
Book value Book value
Amount Proportion Amount Accrued Amount Proportion Amount Accrued
proportion proportion
Accounts
receivable
for which
provision for
bad debts is
accrued on a
single item
basis
Accounts
receivable
for which
provision for
236,709,664 100% 18,822,827 7.95% 217,886,837 311,270,160 100% 20,263,750 6.50% 291,006,410
bad debts is
accrued on a
combined
basis
Total 236,709,664 100% 18,822,827 7.95% 217,886,837 311,270,160 100% 20,263,750 6.50% 291,006,410
Provision for bad debts accrued on a combined basis:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Accrued proportion
Amounts due from related
379,160 1,057 0.28%
parties
Amounts due from other
236,330,504 18,821,770 7.96%
customers
Total 236,709,664 18,822,827 --
Disclosed by age:
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 224,050,457
1-2 years 7,902,290
2-3 years 4,756,917
Over 3 years
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Total 236,709,664
As at June 30, 2022, the accounts receivable with ownership restrictions were RMB
48,257,808 Yuan (December 31, 2021: 49,061,015 Yuan). Please refer to Note 7.20 for details.
7.3.2 Provision for bad debts accrued, withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: Yuan
Beginning Changes in this period
Ending
Type balance of the Withdrawn or
Accrued Cancelled balance
year transferred back
Accounts receivable for which
20,263,750 -486,076 954,847 18,822,827
provision for bad debts is accrued
Total 20,263,750 -486,076 - 954,847 18,822,827
7.3.3 Accounts receivable actually cancelled after verification in this period
Whether the
Procedures of
Nature of Amount of Reason for payment is
cancel after
Unit accounts cancel after cancel after caused by a
verification
receivable verification verification related
performed
transaction
Examined and
Shanghai Shangshu Yonghui Payment for Bankrupcy
954,847 approved by No
Fresh Food Co., Ltd. goods liquidation
management
Total -- 954,847 -- -- --
7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in total Ending balance of
Relationship with
Unit Amount Period accounts provision for bad
the Group
receivable and doubtful debts
Customer 1 Third party 32,417,663 Within 1 year 13.7% 152,239
Customer 2 Third party 25,143,196 Within 1 year 10.6% 70,101
Customer 3 Third party 8,919,126 Within 1 year 3.8% 1,646,585
Customer 4 Third party 6,161,123 1 to 2 years 2.6% 6,161,123
Customer 5 Third party 4,633,427 Within 1 year 2.0% 102,054
Total -- 77,274,535 -- 32.7% 8,132,102
7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.6 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Receivables financing
Unit: Yuan
Item Ending balance Beginning balance
Bills receivable 293,023,621 364,457,497
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Total 293,023,621 364,457,497
7.4.1 The pledged bills receivable of the Group at the end of the year
Nil
7.4.2 Outstanding endorsed bills that have not matured at the end of the year
Item Amount derecognised at year end
Bank acceptance bills 44,374,124
Total 44,374,124
As at June 30, 2022, bills endorsed by the Group to other parties which are not yet due at the
end of the period is RMB 44,374,124 Yuan (December 31, 2021: RMB 449,373,119 Yuan).
The notes are used for payment to suppliers and constructions. The Group believes that due to
good reputation of bank, the risk of notes not accepting by bank on maturity is very low,
therefore derecognise the note receivables endorsed. If the bank is unable to pay the notes on
maturity, according to the relevant laws and regulations of China, the Group would undertake
limited liability for the notes.
7.5 Advance payment
7.5.1 Advance payment listed by age
Unit: Yuan
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
Within 1 year 39,188,781 99.99% 75,207,094 99.90%
1-2 years 420 0.01% 28,785 0.10%
2-3 years
More than 3 years
Total 39,189,201 -- 75,235,879 --
7.5.2 Advance payment collected by the prepaid parties of top 5 units ranked by the
ending balance
Unit: Yuan
Percentage in the
Relationship with Reason for
Category of client Amount Age total advance
the Group unsettlement
payment%
Unit 1 Third party 27,057,504 Within 1 year Prepayments 69.0%
Unit 2 Third party 1,775,554 Within 1 year Prepayments 4.5%
Unit 3 Third party 1,368,820 Within 1 year Prepayments 3.5%
Unit 4 Third party 1,112,707 Within 1 year Prepayments 2.8%
Prepaid
Unit 5 Third party 1,073,128 Within 1 year 2.7%
electricity fees
Total -- 32,387,713 -- 82.5%
7.6 Other receivables
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Unit: Yuan
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 24,225,429 30,125,270
Total 24,225,429 30,125,270
Other receivables
7.6.1 Other receivables classified by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Deposit and guaranty money receivable 4,085,568 4,568,157
Consumption tax and added-value tax export rebate 9,503,583 7,204,557
Imprest receivable 394,945 252,481
Compensation for land acquisition and storage receivable 11,550,000
Other 10,241,333 6,550,075
Total 24,225,429 30,125,270
7.6.2 Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 19,135,648
1-2 years 2,273,769
2-3 years 155,825
More than 3 years 2,660,187
Total 24,225,429
7.6.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn or
transferred back in this period was RMB 0 Yuan.
7.6.4 Other receivables actually cancelled after verification in this period
Nil
7.6.5 Other receivables collected by the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in total Ending balance of
Ending
Unit Nature Age ending balance of other provision for bad
balance
accounts receivable debts
Value-added tax
Unit 1 8,294,068 Within 1 years 34.2%
export rebate
Value-added tax
Unit 2 1,209,515 Within 1 years 5.0%
export rebate
Unit 3 Utilities receivable 983,511 Within 1 years 4.1%
Unit 4 Guaranty money 657,000 Within 1 year 2.7%
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Unit 5 Guaranty money 572,880 Within 1 years 2.4%
Total -- 11,716,974 -- 48.4%
7.6.6 Accounts receivable involving government subsidies
Nil
7.6.7 Other receivables that are terminated for recognition due to transfer of financial
assets
Nil
7.6.8 Other receivables transferred and then included in assets and liabilities
Nil
7.7 Inventories
7.7.1 Inventory classification
Unit: Yuan
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 55,287,545 55,287,545 245,114,403 245,114,403
Goods in process 2,144,712,118 2,144,712,118 1,937,081,109 1,937,081,109
Commodity stocks 646,119,559 12,294,314 633,825,245 634,212,222 13,785,214 620,427,008
Total 2,846,119,222 12,294,314 2,833,824,908 2,816,407,734 13,785,214 2,802,622,520
7.7.2 Inventory depreciation provision
Unit: Yuan
Increase in this period Decrease in this period
Beginning
Item Transfer back or Ending balance
balance Accrual Other Other
write-off
Raw materials
Goods in process
Commodity stocks 13,785,214 12,294,314 13,785,214 12,294,314
Total 13,785,214 12,294,314 13,785,214 12,294,314
7.8 Other current assets
Unit: Yuan
Item Ending balance Beginning balance
Prepaid corporate income tax 12,675,977 16,697,663
Deductible input tax 17,281,881 198,516,812
Expense to be amortized 2,095,829 1,938,126
Total 32,053,687 217,152,601
7.9 Long-term equity investments
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Unit: Yuan
Movements during the period Ending
Beginning balance of
Losses from Other Ending balance
Investee balance (book
Increase in Decrease investments omprehensive
Other Declare cash Accrual
(book value)
provision
value) equity dividend or provision for Others for
capital in capita under income
changing profit impairment impairment
equity-method adjustment
1. Joint ventures
SAS L&M
Holdings
39,652,834 -798,152 38,854,682
(“L&M
Holdings”)
Subtotal 39,652,834 -798,152 38,854,682
2. Associates
Weimeisi
(Shanghai)
Enterprise
Development 2,366,811 -43,743 2,323,068
Co., Ltd.
(“Weimeisi
Shanghai”)
Yantai Santai
Real Estate
Development 3,519,656 17,204 3,536,860
Co., Ltd.
Chengdu
Yufeng Brand
Management
Co., Ltd. 481,472 -33,972 447,500
(“Chengdu
Yufeng”)
(Note)
Yantai Guolong
Wine Industry
Co., Ltd.
(“Guolong 475,737 -62,654 413,083
Wine
Industry”)
(Note)
Subtotal 6,843,676 -123,165 6,720,511
Total 46,496,510 -921,317 45,575,193
Note: The Group has appointed one director to each of these investees.
7.10 Investment real estate
7.10.1 Investment real estate by cost measurement method
Unit: Yuan
Houses and Construction in
Item Land use right Total
buildings progress
Ⅰ Original book value
1. Beginning balance 70,954,045 70,954,045
2. Increase in this period
2.1 Outsourcing
2.2 Transfer in from
inventories\fixed assets\
construction in progress
2.3 Business merger
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Houses and Construction in
Item Land use right Total
buildings progress
increase
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 70,954,045 70,954,045
Ⅱ Accumulated depreciation
& accumulated amortization
1. Beginning balance 46,451,787 46,451,787
2. Increase in this period 1,470,923 1,470,923
2.1 Accrual or
1,470,923 1,470,923
amortization
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 47,922,710 47,922,710
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance
Ⅳ Book value
1. Ending book value 23,031,335 23,031,335
2. Beginning book value 24,502,258 24,502,258
7.11 Fixed assets
Unit: Yuan
Item Ending balance Beginning balance
Fixed assets 5,546,334,638 5,687,867,314
Disposal of fixed assets
Total 5,546,334,638 5,687,867,314
7.11.1 Particulars of fixed assets
Unit: Yuan
Houses and
Item Machinery equipment Transportation tools Total
buildings
Ⅰ Original book value:
1. Beginning balance 5,294,917,836 2,820,909,563 27,181,876 8,143,009,275
2. Increase in this period 7,765,560 22,210,575 27,004 30,003,139
2.1 Acquisition 7,765,560 20,743,022 27,004 28,535,586
2.2 Transfer in from
1,467,553 1,467,553
construction in progress
2.3 Business merger
increase
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Houses and
Item Machinery equipment Transportation tools Total
buildings
3. Decrease in this period 25,842,528 69,336,780 1,394,520 96,573,828
3.1 Disposal or
25,842,528 69,336,780 1,394,520 96,573,828
retirement
4. Ending balance 5,276,840,868 2,773,783,358 25,814,360 8,076,438,586
Ⅱ Accumulated depreciation
1. Beginning balance 1,017,892,171 1,397,163,895 22,607,868 2,437,663,934
2. Increase in this period 71,676,682 76,661,614 1,078,182 149,416,478
2.1 Accrual 71,676,682 76,661,614 1,078,182 149,416,478
3. Decrease in this period 7,742,902 50,634,316 1,268,628 59,645,846
3.1 Disposal or
7,742,902 50,634,316 1,268,628 59,645,846
retirement
4. Ending balance 1,081,825,951 1,423,191,193 22,417,422 2,527,434,566
Ⅲ Impairment provision
1. Beginning balance 17,478,027 17,478,027
2. Increase in this period
2.1 Accrual
3. Decrease in this period 14,808,645 14,808,645
3.1 Disposal or
14,808,645 14,808,645
retirement
4. Ending balance 2,669,382 2,669,382
Ⅳ Book value
1. Ending book value 4,195,014,917 1,347,922,783 3,396,938 5,546,334,638
2. Beginning book value 4,277,025,665 1,406,267,641 4,574,008 5,687,867,314
As at June 30, 2022, the net value of the fixed assets with ownership restrictions was RMB
305,466,716 Yuan (December 31, 2021: RMB 313,012,605 Yuan). Please refer to Note 7.55
for details.
7.11.2 Particulars of temporarily idle fixed assets
Unit: Yuan
Original book Accumulated Depreciation
Item Book value Remarks
value depreciation reserves
Buildings 23,740,839 11,593,042 12,147,797
Machinery equipment 19,121,524 16,176,842 2,669,382 275,300
Other equipment 3,217,761 3,060,653 157,108
Total 46,080,124 30,830,537 2,669,382 12,580,205
7.11.3 Particulars of fixed assets under finance leases
Nil
7.11.4 Fixed assets under operating lease
Unit: Yuan
Item Ending book value
Machinery equipment 8,583
7.11.5 Particulars of fixed assets without property certificates
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Unit: Yuan
Reason for not receiving the property
Item Book value
certificate
Dormitory Building, Main Building and Reception Building of
269,046,579 Under transaction
Chang’an Chateau
European Town, Main Building and Service Building of
167,418,191 Under transaction
Chateau AFIP
Office Building and Packaging Workshop of Icewine Valley 8,938,513 Under transaction
Wine-making Workshop of Changyu (Jingyang) 4,900,454 Under transaction
Office Building, Laboratory Building and Workshop of
3,063,698 Under transaction
Fermentation Center
Finished Goods Warehouse and Workshop of Kylin Packaging 2,079,477 Under transaction
Total 455,446,912
7.12 Construction in progress
Unit: Yuan
Item Ending balance Beginning balance
Construction in progress 660,727,258 590,172,099
Engineering materials
Total 660,727,258 590,172,099
7.12.1 Particulars of construction in progress
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Research, Development & Manufacture
Center (“Changyu Wine City 630,106,088 630,106,088 577,328,351 577,328,351
Complex”)
Construction Project of Ningxia
2,731,835 2,731,835 2,835,598 2,835,598
Chateau
Construction Project of Chang’an
1,245,742 1,245,742 1,245,742 1,245,742
Chateau
Construction Project of Shihezi
5,328,785 5,328,785 1,028,512 1,028,512
Chateau
Museum Upgrading and Rebuilding
14,173,081 14,173,081
Project
Construction Projects of Other
7,141,727 7,141,727 7,733,896 7,733,896
Companies
Total 660,727,258 660,727,258 590,172,099 590,172,099
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7.12.2 Changes of major construction in progress in this period
Unit: Yuan
Transferred Including:
Proportion of Accumulative Capitalization
Other capitalized
Beginning Increase in to fixed decrease in Ending accumulative capitalized ratio of
Item Budget amount of Capital source
balance this period assets in this period balance project input amount of interest in this
interest in this
this period in budget interest period
period
1.2% Loans form financial
Changyu Wine City
4,505,780,000 577,328,351 52,777,737 630,106,088 83.9% 17,155,308 and institutions and
Complex
4.3% self-raised funds
Construction Project of
428,256,552 2,835,598 1,363,790 1,467,553 2,731,835 100% Self-raised funds
Ningxia Chateau
Construction Project of
698,120,331 1,245,742 1,245,742 100% Self-raised funds
Chang’an Chateau
Construction Project of
780,000,000 1,028,512 4,300,273 5,328,785 97.3% Self-raised funds
Shihezi Chateau
Museum Upgrading and
51,000,000 14,173,081 14,173,081 27.8% Self-raised funds
Rebuilding Project
Total 6,463,156,883 582,438,203 72,614,881 1,467,553 653,585,531 -- 17,155,308 --
As at June 30, 2022, there was no indication for impairment of construction in progress of the Group, so no provision for impairment was made.
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7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement method
Unit: Yuan
Plantation
Item Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 17,909,982 252,353,951 270,263,933
2. Increase in this period 834,755 834,755
2.1 Outsourcing
2.2 Self cultivation 834,755 834,755
The immature turn to the mature
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 18,744,737 252,353,951 271,098,688
Ⅱ Accumulated depreciation
1. Beginning balance 76,550,991 76,550,991
2. Increase in this period 6,891,408 6,891,408
2.1 Accrual 6,891,408 6,891,408
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 83,442,399 83,442,399
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance
Ⅳ Book value
1. Ending book value 18,744,737 168,911,552 187,656,289
2. Beginning book value 17,909,982 175,802,960 193,712,942
As at June 30, 2022, no ownership of the biological assets was restricted.
As at June 30, 2022, there was no indication for impairment of biological assets of the Group,
so no provision was made.
7.14 Right-of-use assets
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Unit: Yuan
Item Building Land Others Total
Ⅰ Original book value
1. Beginning balance 57,368,820 137,980,409 1,697,986 197,047,215
2. Increase in this period 25,502,888 25,502,888
3. Decrease in this period
4. Ending balance 82,871,708 137,980,409 1,697,986 222,550,103
Ⅱ Accumulated amortization
1. Beginning balance 17,898,529 43,900,453 679,194 62,478,176
2. Increase in this period 7,983,339 2,898,345 169,799 11,051,483
2.1 Accrual 7,983,339 2,898,345 169,799 11,051,483
3. Decrease in this period
3.1 Disposal
4. Ending balance 25,881,868 46,798,798 848,993 73,529,659
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
4. Ending balance
Ⅳ Book value
1. Ending book value 56,989,840 91,181,611 848,993 149,020,444
2. Beginning book value 39,470,291 94,079,956 1,018,792 134,569,039
7.15 Intangible assets
7.15.1 Particulars of intangible assets
Unit: Yuan
Item Land use right Software use right Trademark Total
Ⅰ Original book value
1. Beginning balance 500,566,714 100,664,699 189,491,618 790,723,031
2. Increase in this period 36,844 36,844
2.1 Acquisition 36,844 36,844
2.2 Internal R&D
2.3 Business merger
increase
3. Decrease in this period
3.1 Disposal
4. Ending balance 500,566,714 100,701,543 189,491,618 790,759,875
Ⅱ Accumulated amortization
1. Beginning balance 104,622,145 53,525,938 14,708,069 172,856,152
2. Increase in this period 5,155,063 4,661,661 183,659 10,000,383
2.1 Accrual 5,155,063 4,661,661 183,659 10,000,383
3. Decrease in this period
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Land use right Software use right Trademark Total
3.1 Disposal
4. Ending balance 109,777,208 58,187,599 14,891,728 182,856,535
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
4. Ending balance
Ⅳ Book value
1. Ending book value 390,789,506 42,513,944 174,599,890 607,903,340
2. Beginning book value 395,944,569 47,138,761 174,783,549 617,866,879
As at June 30, 2022, the net value of the intangible assets with ownership restrictions was
RMB 165,465,123 Yuan (December 31, 2021: RMB 201,345,477 Yuan). Please refer to Note
7.55 for details.
7.15.2 Particulars of land use right of that not receiving the property certificate
Nil
7.16 Goodwill
7.16.1 Original book value of goodwill
Unit: Yuan
Name of the invested Increase in this period Decrease in this period
Beginning
unit or matter forming Formed by business Ending balance
balance Other Disposal Other
goodwill merger
Etablissements Roullet
Fransac (“Roullet 13,112,525 13,112,525
Fransac”)
Dicot Partners, S.L
92,391,901 92,391,901
(“Atrio Group”)
Indomita Wine
6,870,115 6,870,115
Company Chile, SpA
Kilikanoon Estate,
37,063,130 37,063,130
Australia
Total 149,437,671 149,437,671
7.16.2 Provision for impairment of goodwill
Unit: Yuan
Name of the invested Increase in this period Decrease in this period
Beginning
unit or matter forming Formed by business Ending balance
balance Other Disposal Other
goodwill merger
Etablissements Roullet
Fransac (“Roullet
Fransac”)
Dicot Partners, S.L
(“Atrio Group”)
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Indomita Wine
Company Chile, SpA
Kilikanoon Estate,
37,063,130 37,063,130
Australia
Total 37,063,130 37,063,130
7.17 Long-term unamortized expenses
Unit: Yuan
Increase in this Amortization in this
Item Beginning balance Other decrease Ending balance
period period
Land acquisition
46,822,724 732,503 46,090,221
fees
Afforestation fees 127,686,106 4,345,051 123,341,055
Renovation costs 104,279,631 8,169,883 4,133,831 108,315,683
Other 5,804,702 664,358 633,904 5,835,156
Total 284,593,163 8,834,241 9,845,289 283,582,115
7.18 Deferred income tax assets/liabilities
7.18.1 Un-offset deferred income tax assets
Unit: Yuan
Ending Balance Beginning Balance
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Asset impairment provision 33,786,523 8,568,322 51,526,991 11,522,575
Unrealized profits from inter-company
250,982,414 62,745,604 481,484,528 120,371,131
transactions
Deductible loss 313,844,349 76,145,269 266,833,106 63,160,456
Unpaid bonus 123,119,447 30,779,862 150,325,085 37,581,271
Dismission welfare 10,563,292 2,640,823 14,132,191 3,533,048
Deferred income 36,784,847 7,691,157 41,295,338 8,642,716
Others 3,464,726 866,181 1,598,132 399,534
Total 772,545,598 189,437,218 1,007,195,371 245,210,731
7.18.2 Un-offset deferred income tax liabilities
Unit: Yuan
Ending Balance Beginning Balance
Item Taxable Taxable
Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Assets appraisal appreciation in business merger
44,565,823 10,869,198 46,411,478 11,300,970
under non-common control
Others 822,161 205,540 2,012,000 503,000
Total 45,387,984 11,074,738 48,423,478 11,803,970
7.18.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
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Deductable temporary difference
Deductible loss 284,308,486 234,250,359
Total 284,308,486 234,250,359
7.18.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
2022 21,367,869 21,367,869
2023 22,801,737 22,801,737
2024 42,088,453 42,088,453
2025 75,794,409 75,794,409
2026 72,197,891 72,197,891
2027 50,058,127
Total 284,308,486 234,250,359 --
7.19 Other non-current assets
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Royalty 132,977,617 132,977,617 144,120,442 144,120,442
Total 132,977,617 132,977,617 144,120,442 144,120,442
7.20 Short-term loans
7.20.1 Classification of short-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan
Mortgage loan 121,244,283 118,469,193
Guaranteed loan 37,018,640 25,266,108
Fiduciary loan 330,201,502 478,331,156
Total 488,464,425 622,066,457
As at June 30, 2022, EUR mortgaged loan was Hacienday Viedos Marques del Atrio, S.L.U
(“Atrio”) factoring of accounts receivable from banks including Banco de Sabadell, S.A. of
EUR 6,885,710 (equivalent of RMB 48,257,808 Yuan) (December 31, 2021: RMB
49,061,015 Yuan).
As at June 30, 2022, USD mortgaged loan was Chile Indomita Wine Group mortgaged USD
10,875,000 (equivalent of RMB 72,986,475 Yuan) of its fixed assets to Banco Scotiabank
(December 31, 2021: RMB 69,408,178 Yuan).
On June 30, 2022, AUD guaranteed loan was Australia Kilikanoon Estate has borrowed from
ANZ Bank AUD 8,022,243 (equivalent of RMB 37,018,640 Yuan) (December 31, 2021:
RMB 25,266,108 Yuan), and it is guaranteed by this Company.
7.21 Accounts payable
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7.21.1 List of accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Accounts payable for materials, etc. 449,973,807 493,453,816
Total 449,973,807 493,453,816
7.21.2 Explanation of significant accounts payable aged more than one year
As at June 30, 2022, there were no significant accounts payable aged more than one year.
7.22 Contract liabilities
Unit: Yuan
Item Ending balance Beginning balance
Advances from customers 141,073,446 144,013,594
Withholding of goods with sales rebate 3,107,122
Total 141,073,446 147,120,716
7.23 Employee remunerations payable
7.23.1 List of employee remunerations payable
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Short-term remuneration 180,557,897 191,324,599 237,679,442 134,203,054
2. Post-employment welfare – defined
329,353 22,512,552 22,813,079 28,826
contribution plan
3. Dismission welfare 14,132,191 3,343,352 6,912,251 10,563,292
4.Other welfare due within one year
Total 195,019,441 217,180,503 267,404,772 144,795,172
7.23.2 List of short-term remunerations
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Salaries, bonuses, allowances and
178,842,535 166,229,721 212,218,271 132,853,985
subsidies
2. Staff welfare 1,640,965 8,922,308 9,014,401 1,548,872
3. Social insurance charges 303,836 7,340,710 7,582,499 62,047
Including: Medical insurance 303,836 6,574,512 6,818,896 59,452
Injury insurance 764,230 761,635 2,595
Maternity insurance 1,968 1,968
4. Housing fund 38,582 6,417,598 6,417,598 38,582
5. Union fee and staff education fee 1,851,650 2,414,262 2,465,842 1,800,070
6. Short-term compensated absences
7. Short-term profit-sharing plan
Minus: Those divided into non-current
2,119,671 19,169 2,100,502
liabilities
Total 180,557,897 191,324,599 237,679,442 134,203,054
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7.23.3 List of defined contribution plan
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment insurance 328,120 21,904,799 22,204,093 28,826
2. Unemployment insurance 1,233 607,753 608,986
3. Enterprise annuity payment
Total 329,353 22,512,552 22,813,079 28,826
7.23.4 Dismission welfare
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Compensation for server of labor
relation
2. Compensation for early retirement 14,132,191 3,343,352 6,912,251 10,563,292
Total 14,132,191 3,343,352 6,912,251 10,563,292
7.24 Taxes and dues payable
Unit: Yuan
Item Ending balance Beginning balance
Value added tax 39,368,304 54,103,944
Consumption tax 33,341,114 70,563,701
Corporate income tax 95,575,114 194,566,746
Individual income tax 788,493 872,252
Urban maintenance and construction tax 4,951,319 7,128,647
Education surcharges 3,657,848 5,199,891
Urban land use tax 2,440,761 2,441,121
Other 6,469,159 7,445,998
Total 186,592,112 342,322,300
7.25 Other payables
Unit: Yuan
Item Ending balance Beginning balance
Interest payable 1,906,063 323,074
Dividends payable 308,809,220 68,392
Other payables 350,549,630 452,642,025
Total 661,264,913 453,033,491
7.25.1 Interest payable
Unit: Yuan
Item Ending balance Beginning balance
Interest of long-term loans with interest paid by
installment and principal paid on maturity
Interest of corporate bonds
Interest payable of short-term loans 1,906,063 323,074
Interest of preferred shares\ perpetual bonds
divided into financial liabilities
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Item Ending balance Beginning balance
Other
Total 1,906,063 323,074
7.25.2 Dividends payable
Unit: Yuan
Item Ending balance Beginning balance
Ordinary stock dividends 308,458,800
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Other 350,420 68,392
Total 308,809,220 68,392
7.25.3 Other payables
7.25.3.1 Other payables listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Dealer’s deposit payable 213,691,158 241,414,134
Equipment purchase and construction costs
34,679,454 44,345,312
payable
Transportation charges payable 12,884,489 29,192,798
Advertisement expenses payable 10,575,334 41,264,460
Employee cash deposit 309,282 5,037,925
Supplier’s deposit payable 10,846,533 12,966,789
Contracting fees payable 4,328,466 8,668,872
Other 63,234,914 69,751,735
Total 350,549,630 452,642,025
7.25.3.2 Explanation of significant accounts payable aged more than one year
As at June 30, 2022, there were no significant accounts payable aged more than one year.
7.26 Non-current liabilities due within one year
Unit: Yuan
Item Ending balance Beginning balance
Long-term loans due within one year 91,720,966 74,520,037
Bonds payable due within one year
Long-term accounts payable due within
22,000,000 22,000,000
one year
Lease liabilities due within one year 21,938,394 14,345,089
Total 135,659,360 110,865,126
7.27 Other current liabilities
Item Ending balance Beginning balance
Unamortized VAT amount 18,339,549 18,374,193
Total 18,339,549 18,374,193
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7.28 Long-term loans
7.28.1 Classification of long-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledged loan
Mortgage loan
Guaranteed loan 43,912,958 57,092,000
Fiduciary loan 180,664,570 193,475,080
Minus: Long-term loans due within one year 91,720,966 74,520,037
Total 132,856,562 176,047,043
As at June 30, 2022, fiduciary loans (EUR) were EUR 25,778,290 borrowed by Atrio from
Banco Sabadell, Bankia, Banco Santander, BBVA and Caja Rural de Navarr etc. (equivalent
of RMB 180,664,570 Yuan) (December 31, 2021: RMB 193,475,080 Yuan). Guaranteed
loans (AUD) were Australia Kilikanoon Estate has borrowed AUD 9,516,298 (equivalent of
RMB 43,912,957 Yuan) (December 31, 2021: RMB 50,842,000 Yuan) from ANZ Bank and it
is guaranteed by this Company.
7.29 Lease Liabilities
Unit: Yuan
Item Ending balance Beginning balance
Long-term lease liabilities 133,434,536.00 116,156,677
Minus: Lease liabilities due within one year 14,345,089
21,938,394.00
Total 111,496,142.00 101,811,588
7.30 Long-term accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Long-term accounts payable 42,000,000 64,000,000
Special accounts payable
Total 42,000,000 64,000,000
7.30.1 Long-term accounts payable listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Agricultural Development Fund of China (“CADF”) 64,000,000 86,000,000
Minus: Long-term payables due within one year 22,000,000 22,000,000
Balance of long-term payables 42,000,000 64,000,000
In 2016, Agricultural Development Fund invested RMB 305,000,000 Yuan in the Research,
Development & Manufacture Company, accounting for 37.9% of the registered capital.
According to the investment agreement, it is agreed that Agricultural Development Fund will
take back the investment fund in ten years and obtain fixed income according to year, which
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is 1.2% of the remaining principal. Except for the above fixed income, the Agricultural
Development Fund shall not enjoy other profits of the Research, Development & Manufacture
Company or bear the losses of the Research, Development & Manufacture Company.
Accordingly, the investment of the Agricultural Development Fund in the Research,
Development & Manufacture Company is equity investment nominally, which is debt
investment (finance discount interest loan) in deed. The Group included the investment of the
Agricultural Development Fund in long-term accounts payable measured by amortized cost.
From January to June 2022, the Group gave back the principal of RMB 22,000,000 Yuan.
Refer to Note 7.55 for details of mortgaged and pledged assets.
7.31 Deferred income
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance Forming reason
period period
Governmental
41,295,338 4,510,491 36,784,847
subsidy
Total 41,295,338 4,510,491 36,784,847 --
Projects related to governmental subsidy
Unit: Yuan
Amount
of Amount Amount
Amount
subsidy included in included in
Beginning offset Other Ending Related to
Item of liabilities newly non-operating other
balance the cost changes balance assets/income
increased revenue in income in
expenses
in this this period this period
period
Industrial development
20,500,000 2,050,000 18,450,000 Related to assets
support project
Fixed asset investment
reward of Shihezi 156,600 156,600 Related to assets
Chateau project
Xinjiang industrial
revitalisation and
11,376,000 711,000 10,665,000 Related to assets
technological
transformation project
Special government
1,060,000 530,000 530,000 Related to assets
grant for infrastructure
Wine fermentation
capacity construction 2,000,000 200,000 1,800,000 Related to assets
(Huanren) project
Engineering
technology
transformation of 1,160,000 290,000 870,000 Related to assets
information system
project
Liquor electronic
524,095 333,528 190,567 Related to assets
tracking project
Special fund for
efficient water-saving 1,153,000 81,000 1,072,000 Related to assets
irrigation project
Subsidy for economic
and energy-saving
641,500 64,150 577,350 Related to assets
technological
transformation projects
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Amount
of Amount Amount
Amount
subsidy included in included in
Beginning offset Other Ending Related to
Item of liabilities newly non-operating other
balance the cost changes balance assets/income
increased revenue in income in
expenses
in this this period this period
period
Subsidy for mechanic
development of
225,588 6,635 218,953 Related to assets
Penglai Daliuhang
Base
Special fund for cellar
2,079,711 2,079,711 Related to assets
maintenance
Subsidy for boiler
Related to
reconstruction and 60,000 5,000 55,000
income
demolition
Prize for Yantai
Related to
Mayor’s Cup Industrial 50,000 25,000 25,000
income
Design Competition
Special fund for Yantai
Related to
City Innovation Driven 308,844 57,578 251,266
income
Development
Total 41,295,338 4,510,491 36,784,847
7.32 Other non-current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Employee remunerations payable 2,100,502 2,119,671
Total 2,100,502 2,119,671
As at June 30, 2022, the employee remunerations payable referred to the job security deposit
deducted from the year-end bonus of the employees higher than sales manager of the Group
in proportion, which will be paid from 2022 to 2023 as predicted.
7.33 Share capital
Unit: Yuan
Increase or decrease (+,-) in this period
Beginning Ending
balance Newly issued Allocated Share transferred from balance
Other Subtotal
shares shares accumulation fund
Total shares 685,464,000 685,464,000
7.34 Capital reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Capital premium (Share
519,052,172 519,052,172
capital premium)
Other capital reserves 5,916,588 5,916,588
Total 524,968,760 524,968,760
7.35 Other comprehensive income
Unit: Yuan
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Amount incurred in this period
Minus: Minus:
amount amount
Amount included in included in
Beginning incurred other other Minus: Attributable Attributable Ending
Item before comprehensive comprehensive income to parent to minority
balance balance
income tax income before income before tax company shareholders
in this and transferred and transferred expenses after tax after tax
period to profit or to retained
loss in this earnings in
period this period
1. Other
comprehensive
income not to be
reclassified into
profit and loss later
Including: Changes
after remeasuring
and resetting the
benefit plans
Other
comprehensive
income not to be
reclassified into
profit and loss under
equity method
Changes in
the fair value of
other investments in
equity instruments
Changes in
the fair value of the
enterprise's own
credit risk
2. Other
comprehensive
income to be -34,707,177 -7,384,531 -6,397,496 -987,035 -41,104,673
reclassified into
profit and loss later
Including: Other
comprehensive
income to be
reclassified into
profit and loss under
equity method
Changes in
the fair value of
other debt
investments
Amount of
financial assets
reclassified into
other
comprehensive
income
Provision for
credit impairment of
other credit
investments
Provision for
cash-flow hedge
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Amount incurred in this period
Minus: Minus:
amount amount
Amount included in included in
Beginning incurred other other Minus: Attributable Attributable Ending
Item before comprehensive comprehensive income to parent to minority
balance balance
income tax income before income before tax company shareholders
in this and transferred and transferred expenses after tax after tax
period to profit or to retained
loss in this earnings in
period this period
Difference in
translation of
-34,707,177 -7,384,531 -6,397,496 -987,035 -41,104,673
Foreign Currency
Financial Statement
Total other
comprehensive -34,707,177 -7,384,531 -6,397,496 -987,035 -41,104,673
income
7.36 Surplus reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Legal surplus reserves 342,732,000 342,732,000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Other
Total 342,732,000 342,732,000
7.37 Undistributed profit
Unit: Yuan
Item Ending balance Beginning balance
Undistributed profit at the end of prior period before adjustment 8,929,426,600 8,714,091,755
Total Undistributed profit at the beginning of the period before adjustment
-10,582,161
(increase listed with+ , and decrease listed with -)
Undistributed profit at the beginning of the period after adjustment 8,929,426,600 8,703,509,594
Plus: Net profit for owner of the parent company 358,459,603 500,102,606
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 308,458,800 274,185,600
Common dividend transferred to share capital
Undistributed profit at the end of period 8,979,427,403 8,929,426,600
7.38 Operating income and operating cost
7.38.1 Details of operating income
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Unit: Yuan
Amount incurred in this Amount incurred in prior
Item period period
Income Cost Income Cost
Main business 1,929,907,550 817,568,906 1,841,427,492 753,630,446
Other business 23,184,585 4,286,560 33,032,945 7,883,098
Total 1,953,092,135 821,855,466 1,874,460,437 761,513,544
Including: Income from contracts 1,952,022,192 821,152,102 1,873,414,304 760,879,897
Income from house rents 1,069,943 703,364 1,046,133 633,647
7.38.2 Situation of income from contracts
Unit: Yuan
Contract classification Amount incurred in this period
Type of merchandise
- Alcoholic beverage 1,929,907,550
- Others 22,114,642
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1,952,022,192
7.39 Taxes and surcharges
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 75,570,111 58,366,205
Urban maintenance and construction tax 11,339,556 11,929,833
Education surcharges 8,217,554 8,695,431
Building tax 13,700,072 13,513,343
Land use tax 5,662,279 5,585,762
Stamp duty 155,653 1,806,604
Other 94,393 322,839
Total 114,739,618 100,220,017
7.40 Selling expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Salary and welfare expenses 129,577,551.00 129,002,823
Marketing expenses 131,324,948.00 108,808,265
Labor expenses 18,445,967.00 16,356,442
Depreciation expenses 29,955,199.00 29,724,959
Storage expenses 13,459,898.00 13,455,458
Advertisement expenses 24,366,253.00 19,485,798
Trademark use fees 10,512,100 11,313,578
Travel expenses 9,343,468 9,275,034
Design & production expenses 9,037,718 9,396,703
Conference expenses 3,106,738 6,652,432
Water, electricity and gas charges 5,393,494 4,969,919
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Other 33,241,085 29,944,199
Total 417,764,419 388,385,610
7.41 Management expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 32,561,222 32,695,621
Depreciation expenses 39,755,608 38,197,467
Contracting expenses 2,119,800 3,852,345
Repair expenses 6,115,206 6,025,536
Office expenses 10,774,571 6,964,669
Amortization expenses 9,457,449 9,827,020
Afforestation fees 6,811,054 6,759,616
Safe production costs 5,358,613 5,159,685
Rental expenses 2,789,523
Business entertainment expenses 1,498,647 1,938,253
Public security & clean-keeping
3,385,138 3,339,145
expenses
Travel expenses 832,989 675,373
Other 8,833,973 5,160,376
Total 127,504,270 123,384,629
7.42 R&D expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 5,509,656 2,477,835
Total 5,509,656 2,477,835
7.43 Financial expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 11,201,775 14,239,535
Minus: Interest income 10,191,697 5,827,243
Plus: Commission charges 701,200 1,020,633
Exchange gain or loss 4,374,160 -69,893
Total 6,085,438 9,363,032
7.44 Other income
Unit: Yuan
Source of other income Amount incurred in this period Amount incurred in prior period
Supporting fund for industrial development 2,050,000 2,050,000
Reward for investment in fixed assets 1,140,000
Special fund for construction of peninsula blue economic
1,000,000
zone
Other – related to assets 2,372,913 2,750,646
Special fund for supporting corporate development 8,222,076 14,283,100
Other – related to income 8,984,256 754,949
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Source of other income Amount incurred in this period Amount incurred in prior period
Total 21,629,245 21,978,695
7.45 Investment income
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Investment income from long-term equity by equity method -921,317 -1,621,780
Investment income from disposal of long-term equity
Investment income gained from trading financial assets
during the holding period
Investment income gained from disposal of trading
financial assets
Dividend income gained from other equity instruments
during the holding period
Gains generated from the remaining equity remeasured as
per fair value after the loss of control
Interest income gained from equity inverstment during the
holding period
Interest income gained from other equity inverstments
during the holding period
Investment income gained from disposal of other equity
inverstments
Total -921,317 -1,621,780
7.46 Loss on impairment of credit
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Loss on bad debts of accounts receivable 486,076 -6,176,948
Total 486,076 -6,176,948
7.47 Loss on impairment of assets
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
1. Loss on bad debts
2. Inventory falling price loss and loss on
1,490,900 3,680,018
impairment of contrct execution cost
3. Loss on impairment of long-term equity
investment
4. Loss on impairment of investment real estate
5. Loss on impairment of fixed assets
6. Loss on impairment of engineering materials
7. Loss on impairment of construction in progress
8. Loss on impairment of productive biological
assets
9. Loss on impairment of oil and gas assets
10. Loss on impairment of intangible assets
11. Loss on impairment of goodwill
12. Loss on impairment of contract assets
13. Other
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
Total 1,490,900 3,680,018
7.48 Income from asset disposal
Unit: Yuan
Source of income from asset disposal Amount incurred in this period Amount incurred in prior period
Income from disposal of fixed assets -8,239,072
Total -8,239,072
7.49 Non-operating income
Unit: Yuan
Amount incurred Amount incurred in Amount included in the current
Item
in this period prior period non-recurring profits/losses
Gains on debt recombination
Gains on exchange of non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current assets 9,800 364 9,800
Others 2,438,813 2,488,414 2,438,813
Total 2,448,613 2,488,778 2,448,613
7.50 Non-operating expenses
Unit: Yuan
Amount incurred in Amount incurred in Amount included in the current
Item
this period prior period non-recurring profits/losses
Loss on debt recombination
Loss on exchange of
non-monetary assets
Donation 310,000 310,000
Loss on scrap of non-current
139,401 45,482 139,401
assets
Fine, penalty and overdue fine
paid due to violation of laws and 579,688 152,960 579,688
administrative regulations
Others 314,443 371,279 314,443
Total 1,343,532 569,721 1,343,532
7.51 Income tax expenses
7.51.1 List of income tax expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 73,145,468 111,247,007
Deferred income tax expenses 55,044,281 25,332,842
Total 128,189,749 136,579,849
7.51.2 Adjustment process of accounting profit and income tax expenses
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Unit: Yuan
Item Amount incurred in this period
Total profit 475,184,181
Income tax expenses calculated according to the legal/applicable tax rate 118,796,045
Influence of different tax rates applicable to subsidiary 147,803
Influence of income tax in the term before adjustment -4,516,274
Influence of nontaxable income
Influence of non-deductible costs, expenses and losses 1,340,490
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior
-92,847
period
Influence of deductible temporary difference or deductible loss of unconfirmed deferred
12,514,532
income tax assets in this period
Income tax expense 128,189,749
7.52 Other comprehensive income
Refer to Note 7.35 for details.
7.53 Items of cash flow statement
7.53.1 Other cash received related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 17,118,754 14,779,461
Interest income 9,195,398 4,075,142
Net amercement income 276,749 71,929
Other 3,545,416 7,335,490
Total 30,136,317 26,262,022
7.53.2 Other cash paid related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 232,451,841 218,063,727
Administrative expenses 45,725,346 41,685,752
Other 12,916,682 6,620,058
Total 291,093,869 266,369,537
7.53.3 Other cash received related to financing activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Interest income from pledged time deposits by
1,654,861
R&D Company
Time deposits pledged by R&D Company for
20,000,000
long-term loans
Total 21,654,861
7.53.4 Other cash paid related to financing activities
Unit: Yuan
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Item Amount incurred in this period Amount incurred in prior period
Cash paid to repay the principal and interest of
9,765,810 7,144,318
the lease liability
Total 9,765,810 7,144,318
7.54 Supplementary information to cash flow statement
7.54.1 Supplementary information to cash flow statement
Unit: Yuan
Supplementary materials Amount incurred in this period Amount incurred in prior period
1. Cash flows from operating activities calculated by
-- --
adjusting the net profit:
Net profit 346,994,432 372,314,963
Plus: Provision for impairment of assets -1,976,976 2,496,930
Depreciation of fixed assets, oil-and-gas assets and
157,778,809 150,175,106
productive biological assets
Depreciation of right-of-use assets 11,051,483 7,149,627
Amortization of intangible assets 10,000,383 10,597,877
Amortization of long-term deferred expenses 9,845,289 10,256,376
Losses on disposal of fixed assets, intangible assets
8,239,072
and other long-term assets (profit listed with “－”)
Losses on retirement of fixed assets (profit listed
129,601 45,118
with “－”)
Losses on fair value change (profit listed with “－”)
Financial costs (profit listed with “－”) 9,960,206 12,767,220
Investment losses (profit listed with “－”) 921,317 1,621,780
Decrease in deferred income tax assets (increase
55,773,513 25,720,341
listed with “-”)
Increase of deferred income tax liabilities (decrease
-729,232 -387,499
listed with “－”)
Decrease in inventories (increase listed with “-”) -29,711,487 28,288,254
Decrease in operating receivables (increase listed
389,398,124 9,205,099
with “-”)
Increase in operating payable (decrease listed with
-361,400,939 -174,316,043
“-”)
Other
Net cash flows from operating activities 606,273,595 455,935,149
2. Significant investment and financing activities
not involving cash deposit and withdrawal:
Debt transferred into assets
Convertible corporate bond due within 1 year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent:
Ending balance of cash 1,839,856,934 1,392,384,794
Minus: Beginning balance of cash 1,502,327,029 1,052,665,105
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent 337,529,905 339,719,689
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7.54.2 Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
1. Cash 1,839,856,934 1,502,327,029
Including: Cash on hand 64,720 71,486
Bank deposits on demand 1,839,792,214 1,502,255,543
Other monetary capital on demand
Due from central bank available for payment
Due from the industry
Inter-bank lending
2. Cash equivalents
Including: Bond investment due within three months
3. Balance of cash and cash equivalents at the end of period 1,839,856,934 1,502,327,029
Including: Restricted use of parent company or subsidiaries
in the group
7.55 Assets with ownership or use right restrictions
Unit: Yuan
Item Ending book value Reason for restriction
Monetary capital 11,363,826 L/C deposit, housing fund, etc.
Accounts receivable 48,257,808 Pledge of short-term loans
Pledge of short-term loans, long-term loans and
Fixed assets 305,466,716
long-term accounts payable
Intangible assets 165,465,123 Pledge of long-term accounts payable
Total 530,553,475 --
7.56 Monetary items of foreign currency
7.56.1 Monetary items of foreign currency
Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
Monetary capital -- -- 2,803,336
Including: USD 417,588 6.7114 2,802,600
EUR 105 7.0084 736
HKD
Accounts receivable -- -- 65,297,700
Including: USD 8,464,972 6.7114 56,811,813
EUR 651,261 7.0084 4,564,298
CAD 119,481 5.2058 621,994
GBP 405,530 8.1365 3,299,595
Short-term borrowing -- -- 103,187,977
Including: USD 15,375,030 6.7114 103,187,977
EUR
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Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
HKD
-- --
7.56.2 The Company’s overseas subsidiaries determine their functional currency based on the
currency in the main economic environment in which they operate. The functional currency of
Atrio and Francs Champs Participations SAS (“Farshang Holdings”) is Euro, the functional
currency of Chile Indomita Wine Group is Chilean Peso, and the functional currency of
Australia Kilikanoon Estate is Australian Dollar.
8. Equity in other entities
8.1 Equity in the subsidiaries
8.1.1 Constitution of enterprise group
Proportion of
Principal business Business shareholding
Name of subsidiary Registration place Acquisition mode
location nature
Direct Indirect
Acquired from a
Xinjiang Tianzhu Wine
Shihezi, Xinjiang, Shihezi, Xinjiang, business combination
Co., Ltd. (“Xinajing Manufacturing 60%
China China under non-common
Tianzhu”)
control
Acquired from a
Etablissements Roullet
business combination
Fransac (“Roullet Cognac, France Cognac, France Trading 100%
under non-common
Fransac”)
control
Acquired from a
Dicot Partners, S.L business combination
Navarre, Spain Navarre, Spain Sales 90%
(“Dicot”) under non-common
control
Via Indómita,S.A.,Via
Dos Andes,S.A., and Acquired by
Bodegas Santa Alicia SpA. Santiago, Chile Santiago, Chile Sales 85% establishment or
(“Chile Indomita Wine investment
Group”)
Acquired from a
Kilikanoon Estate Pty Ltd
Adelaide, Adelaide, business combination
(“Australia Kilikanoon Sales 97.50%
Australia Australia under non-common
Estate”)
control
Beijing Changyu Sales and Acquired by
Distribution Co., Ltd. Beijing, China Beijing, China Sales 100% establishment or
(“Beijing Sales”) investment
Yantai Kylin Packaging Acquired by
Yantai, Shandong, Yantai, Shandong,
Co., Ltd. (“Kylin Manufacturing 100% establishment or
China China
Packaging”) investment
Yantai Chateau Acquired by
Yantai, Shandong, Yantai, Shandong,
Changyu-Castel Co., Ltd. Manufacturing 70% establishment or
China China
(“Chateau Changyu”) (a) investment
Changyu (Jingyang) Wine Acquired by
Xianyang, Xianyang,
Co., Ltd. (“Jingyang Manufacturing 90% 10% establishment or
Shaanxi, China Shaanxi, China
Wine”) investment
Yantai Changyu Pioneer Acquired by
Yantai, Shandong, Yantai, Shandong,
Wine Sales Co., Ltd. Sales 100% establishment or
China China
(“Sales Company”) investment
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Proportion of
Principal business Business shareholding
Name of subsidiary Registration place Acquisition mode
location nature
Direct Indirect
Langfang Development
Acquired by
Zone Castel-Changyu Langfang, Hebei, Langfang, Hebei,
Manufacturing 39% 10% establishment or
Wine Co., Ltd. (“Langfang China China
investment
Castel”)
Changyu (Jingyang) Wine Acquired by
Xianyang, Xianyang,
Sales Co., Ltd. (“Jingyang Sales 10% 90% establishment or
Shaanxi, China Shaanxi, China
Sales”) investment
Langfang Changyu Acquired by
Langfang, Hebei, Langfang, Hebei,
Pioneer Wine Sales Co., Sales 10% 90% establishment or
China China
Ltd. (“Langfang Sales”) investment
Shanghai Changyu Sales Acquired by
and Distribution Co., Ltd. Shanghai, China Shanghai, China Sales 100% establishment or
(“Shanghai Sales”) investment
Beijing Changyu AFIP
Acquired by
Agriculture development Miyun, Beijing, Miyun, Beijing,
Sales 100% establishment or
Co., Ltd. (“Agriculture China China
investment
Development”)
Beijing Chateau Changyu Acquired by
AFIP Global Co., Ltd. Beijing, China Beijing, China Manufacturing 91.53% establishment or
(“AFIP”) (b) investment
Yantai Changyu Wine Acquired by
Yantai, Shandong, Yantai, Shandong,
Sales Co., Ltd. (“Wines Sales 90% 10% establishment or
China China
Sales”) investment
Yantai Changyu Pioneer Acquired by
Yantai, Shandong, Yantai, Shandong,
International Co., Ltd. Sales 70% 30% establishment or
China China
(“Pioneer International”) investment
Hangzhou Changyu Wine Acquired by
Hangzhou, Hangzhou,
Sales Co., Ltd. Sales 100% establishment or
Zhejiang, China Zhejiang, China
(“Hangzhou Changyu”) investment
Ningxia Changyu Grape Acquired by
Yinchuan,
Growing Co., Ltd. Ningxia, China Planting 100% establishment or
Ningxia, China
(“Ningxia Growing”) investment
Huanren Changyu Acquired by
Benxi, Liaoning, Benxi, Liaoning,
National Wines Sales Co., Sales 100% establishment or
China China
Ltd. (“National Wines”) investment
Liaoning Changyu Golden Acquired by
Benxi, Liaoning, Benxi, Liaoning,
Icewine Valley Co., Ltd. Manufacturing 51% establishment or
China China
(“Golden Icewine Valley”) investment
Yantai Development Zone
Acquired by
Changyu Trading Co., Ltd. Yantai, Shandong, Yantai, Shandong,
Sales 100% establishment or
(“Development Zone China China
investment
Trading”)
Acquired by
Beijing AFIP Meeting Miyun, Beijing, Miyun, Beijing,
Services 100% establishment or
Center (“Meeting Center”) China China
investment
Acquired by
Beijing AFIP Tourism and Miyun, Beijing, Miyun, Beijing,
Tourism 100% establishment or
Culture (“AFIP Tourism”) China China
investment
Changyu (Ningxia) Wine Acquired by
Co., Ltd. (“Ningxia Ningxia, China Ningxia, China Manufacturing 100% establishment or
Wine”) investment
Yantai Changyu Chateau Acquired by
Yantai, Shandong, Yantai, Shandong, Wholesale and
Tinlot Co., Ltd. (“Chateau 65% 35% establishment or
China China retail
Tinlot”) investment
Xinjiang Chateau Changyu Shihezi, Xinjiang, Shihezi, Xinjiang, Manufacturing 100% Acquired by
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Proportion of
Principal business Business shareholding
Name of subsidiary Registration place Acquisition mode
location nature
Direct Indirect
Baron Balboa Co., Ltd. China China establishment or
(“Chateau Shihezi”) investment
Ningxia Changyu Acquired by
Yinchuan, Yinchuan,
Longyu Estate Co., Ltd. Manufacturing 100% establishment or
Ningxia, China Ningxia, China
(“Chateau Ningxia”) investment
Shaanxi Chateau Changyu Acquired by
Xianyang, Xianyang,
Rena Co., Ltd. (“Chateau Manufacturing 100% establishment or
Shaanxi, China Shaanxi, China
Chang’an”) investment
Yantai Changyu Wine
Acquired by
Research & Development Yantai, Shandong, Yantai, Shandong,
Manufacturing 88.65% establishment or
Centre Co., Ltd. (“R&D China China
investment
Centre”) (c)
Changyu (HuanRen) Wine Acquired by
Benxi, Liaoning, Benxi, Liaoning, Wine-making
Co., Ltd. (“Huan Ren 100% establishment or
China China project
Wine”) investment
Xinjiang Changyu Sales Acquired by
Shihezi, Xinjiang, Shihezi, Xinjiang,
Co., Ltd. (“Xinjiang Sales 100% establishment or
China China
Sales”) investment
Ningxia Changyu Trading Acquired by
Yinchuan, Yinchuan,
Co., Ltd. (“Ningxia Sales 100% establishment or
Ningxia, China Ningxia, China
Trading”) investment
Shaanxi Changyu Rena Acquired by
Xianyang, Xianyang,
Wine Sales Co., Ltd. Sales 100% establishment or
Shaanxi, China Shaanxi, China
(“Shaanxi Sales”) investment
Penglai Changyu Wine Acquired by
Penglai, Penglai,
Sales Co., Ltd. (“Penglai Sales 100% establishment or
Shandong, China Shandong, China
Wine”) investment
Laizhou Changyu Wine Acquired by
Laizhou, Laizhou,
Sales Co., Ltd. (“Laizhou Sales 100% establishment or
Shandong, China Shandong, China
Sales”) investment
Francs Champs Acquired by
Investment
Participations SAS Cognac, France Cognac, France 100% establishment or
and trading
(“Francs Champs”) investment
Yantai Roullet Fransac Acquired by
Yantai, Shandong, Yantai, Shandong,
Wine Sales Co., Ltd. Sales 100% establishment or
China China
(“Yantai Roullet Fransac”) investment
Yantai Changyu Wine Acquired by
Yantai, Shandong, Yantai, Shandong,
Sales Co., Ltd. (“Wine Sales 100% establishment or
China China
Sales Company”) investment
Shaanxi Chateau Changyu Acquired by
Xianxin, Shaanxi, Xianxin, Shaanxi,
Rena Tourism Co., Ltd. Tourism 100% establishment or
China China
(“Chateau Tourism”) investment
Longkou Changyu Wine Acquired by
Yantai, Shandong, Yantai, Shandong,
Sales Co., Ltd. (“Longkou Sales 100% establishment or
China China
Sales”) investment
Yantai Changyu Cultural
Acquired by
Tourism Development Co., Yantai, Shandong, Yantai, Shandong,
Tourism 100% establishment or
Ltd. (“Changyu Cultural China China
investment
Tourism Company”)
Yantai Changyu Wine Acquired by
Yantai, Shandong, Yantai, Shandong,
Culture Museum Co., Ltd. Tourism 100% establishment or
China China
(“Museum”) investment
Yantai Changyu Cultural Acquired by
Yantai, Shandong, Yantai, Shandong,
Tourism Product Sales Co., Tourism 100% establishment or
China China
Ltd. (“Cultural Sales”) investment
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Proportion of
Principal business Business shareholding
Name of subsidiary Registration place Acquisition mode
location nature
Direct Indirect
Yantai Changyu Window
Acquired by
of International Wine City Yantai, Shandong, Yantai, Shandong,
Tourism 100% establishment or
Co. Ltd. (“Window of China China
investment
Wine City”)
Yantai Chateau Koya Acquired by
Yantai, Shandong, Yantai, Shandong,
Brandy Co., Ltd. Manufacturing 100% establishment or
China China
(“Chateau Koya”) investment
Changyu (Shanghai)
Acquired by
International Digital
Shanghai, China Shanghai, China Sales 100% establishment or
Marketing Center Co.,
investment
Ltd. (“Digital Marketing”)
Tianjin Changyu Yixin Acquired by
Digital Technology Co., Tianjin, China Tianjin, China Sales 51% establishment or
Ltd. (“Tianjin Yixin”) investment
Shanghai Changyu Guoqu Acquired by
Digital Technology Co., Shanghai, China Shanghai, China Sales 51% establishment or
Ltd. (“Shanghai Guoqu”) investment
Yantai Christon Catering Acquired by
Yantai, Shandong, Yantai, Shandong,
Co., Ltd. (“Christon Catering 100% establishment or
China China
Catering”) investment
Explanation for difference between the proportion of shareholding and proportion of voting
power in the subsidiaries:
(a) Chateau Changyu is a Sino-foreign joint venture established by the Group and a foreign
investor, accounting for 70% of Changyu Chateau’s equity interest. Through agreement
arrangement, the Group has the full power to control Changyu Chateau’s strategic operating,
investing and financing policies. The agreement arrangement will be terminated on December
31, 2022.
(b) AFIP is a limited liability company jointly established by the Group and Yantai De’an and
Beijing Qinglang. In June 2019, Yantai Dean transferred 1.31% of its equity to Yantai
Changyu.After the equity change, the Group holds 91.53% of its equity. Through agreement
arrangement, the Group has the full power to control AFIP’s strategic operating, investing and
financing policies. The agreement arrangement will be terminated on September 2, 2024.
(c) The Research, Development & Manufacture Company is a joint venture established by the
Group and Agricultural Development Fund, whose 88.65% of the shares were held by the
Group on June 30, 2022. As stated in Note 7.30, the Group exercises full control over the
operation, investment and financing policies of the Research, Development & Manufacture
Company by contract arrangement. The contract arrangement will expire on May 22, 2026.
Up to June 30, 2022, the remaining investment of the Agricultural Development Fund
accounted for 11.35% of the registered capital.
8.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
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Shareholding Profit/loss attributable Other comprehensive Dividend declared to Balance of minority
Name of proportion of to minority income attributable to be distributed to shareholder’s
subsidiary minority shareholders in this minority shareholders minority shareholders interest at the end of
shareholders period in this period in this period period
Xinjiang Tianzhu 40% -4,070,921 40,655,069
AFIP 8.47% 56,409,393
Icewine Valley 49% -1,605,774 31,713,288
Indomita Wine 15% 647,363 -801,822 1,793,435 52,765,086
Explanation for difference between the proportion of shareholding and proportion of voting
power of the minority shareholders in the subsidiaries: See details in Note 8.1.1.
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8.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance Beginning balance
Name of subsidiary Non-current Current Non-current Total Non-current Current Non-current Total
Current assets Total assets Current assets Total assets
assets liabilities liabilities liabilities assets liabilities liabilities liabilities
Xinjiang Tianzhu 33,644,817 23,298,089 56,942,906 894,225 5,336,114 6,230,339 22,333,906 43,852,510 66,186,417 -39,567 5,336,114 5,296,547
AFIP 254,271,705 407,381,967 661,653,672 25,383,086 3,020,582 28,403,668 249,865,391 414,851,163 664,716,554 27,459,352 3,641,941 31,101,292
Icewine Valley 34,788,463 23,378,433 58,166,896 25,951,609 25,951,609 24,018,451 24,450,344 48,468,795 12,976,418 12,976,418
Indomita Wine 205,144,925 318,267,388 523,412,313 155,135,237 8,906,387 164,041,624 196,488,084 314,756,823 511,244,907 130,027,677 8,906,387 138,934,064
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Name of
subsidiary Total comprehensive Operating cash Total comprehensive
Operating income Net profit Operating income Net profit Operating cash flow
income flow income
Xinjiang Tianzhu 4,587 -10,177,303 -10,177,303 574,997 18,349 -1,595,672 -1,595,672 -347,811
AFIP 88,990,033 -365,257 -365,257 1,740,771 102,787,989 2,945,093 2,945,093 13,822,216
Icewine Valley 4,409,589 -3,277,090 -3,277,090 5,054,712 9,007,185 -4,854,101 -4,854,101 2,755,011
Indomita Wine 100,634,284 4,315,754 -1,029,729 9,000,393 91,401,584 2,429,411 -14,681,641 13,380,180
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8.2 Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: Yuan
Ending balance/ amount incurred in this Beginning balance / amount incurred in
period prior period
Joint ventures -- --
Total book value of investment 38,854,682 39,652,834
Total of the following items calculated
according to the shareholding ratio
-- Net profit -798,152 -1,125,662
-- Other comprehensive income
-- Total comprehensive income -798,152 -1,125,662
Associates:
Total book value of investment 6,720,511 6,843,676
Total of the following items calculated
according to the shareholding ratio
-- Net profit -123,165 -496,118
-- Other comprehensive income
-- Total comprehensive income -123,165 -496,118
9. Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in
the normal course of the Group’s operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
The following mainly presents information about the Group’s exposure to each of the above
risks and their sources, their changes during the year, and the Group’s objectives, policies and
processes for measuring and managing risks, and their changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group’s financial performance. Based on such objectives, the Group’s risk
management policies are established to identify and analyse the risks faced by the Group, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities.
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9.1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily
attributable to cash at bank, receivables, debt investments and derivative financial instruments
entered into for hedging purposes. Exposure to these credit risks are monitored by
management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.
Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.
As at June 30, 2022, the Group’s maximum exposure to credit risk which will cause a
financial loss to the Group due to failure to discharge an obligation by the counterparties.
In order to minimise the credit risk, the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group, credit review is
required for clients who require credit transactions. In addition, the Group continuously
monitors the balance of account receivable to ensure there’s no exposure to significant bad
debt risks. For transactions that are not denominated in the functional currency of the relevant
operating unit, the Group does not offer credit terms without the specific approval of the
Department of Credit Control in the Group. In addition, the Group reviews the recoverable
amount of each individual trade debt at each balance sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard, the management of the
Group considers that the Group's credit risk is significantly reduced.
Since the Group trades only with recognised and creditworthy third parties, there is no
requirement for collateral. Concentrations of credit risk are managed by
customer/counterparty, by geographical region and by industry sector. As at June 30, 2022,
32.7% of the Group trade receivables are due from top five customers (December 31, 2021:
42.8%). There is no collateral or other credit enhancement on the balance of the trade
receivables of the Group.
9.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The Group and its individual
subsidiaries are responsible for their own cash management, including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands (subject to approval
by the Group’s board when the borrowings exceed certain predetermined levels). The Group’s
policy is to regularly monitor its liquidity requirements and its compliance with lending
covenants, to ensure that it maintains sufficient reserves of cash, readily realisable marketable
securities and adequate committed lines of funding from major financial institutions to meet
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its liquidity requirements in the short and longer term.
9.3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk, respectively. The Group determines the
appropriate weightings of the fixed and floating rate interest-bearing instruments based on the
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure.
(1) As at June 30, 2022, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: Yuan
June 30, 2022 December 31, 2021
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Cash at bank 1.75%-2.25% 53,200,000 1.75%-2.25% 53,200,000
Financial liabilities
- Short-term loans 0.65%-4.57% -188,464,425 0.35%-3.35% -172,066,457
- Long-term loans (including the
0.95%-4.28% -180,664,570 0.95%-3.28% -193,475,080
portion due within one year)
- Long-term payables (including the
1.20% -64,000,000 1.20% -86,000,000
portion due within one year)
- Lease liabilities (including the
4.65% -131,934,536 4.65% -116,156,677
portion due within one year)
Total -511,863,531 -514,498,214
Variable rate instruments:
Unit: Yuan
June 30, 2022 December 31, 2021
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Cash at bank 0.3%-1.8225% 1,851,677,905 0.3%-1.8225% 1,513,824,507
Financial liabilities
- Short-term loans 1-year LPR-0.005 -300,000,000 1-year LPR-0.005 -450,000,000
- Long-term loans (including the
90% of 5-year LPR 90% of 5-year LPR -6,250,000
portion due within one year)
- Long-term loans (AUD) BBSY+1.10% -43,912,958 BBSY+1.10% -50,842,000
Total 1,507,764,947 1,006,732,507
(2) Sensitivity analysis
Management of the Group believes interest rate risk on bank deposit is not significant,
therefore does not disclose sensitivity analysis for interest rate risk.
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As at June 30, 2022, based on assumptions above, it is estimated that a general increase of 50
basis points in interest rates, with all other variables held constant, would decrease the
Group’s equity by RMB 644,836 Yuan (2021: RMB 2,351,189 Yuan), and net profit by RMB
644,836 Yuan (2021: RMB 2,351,189 Yuan).
The sensitivity analysis above indicates the instantaneous change in the net profit and equity
that would arise assuming that the change in interest rates had occurred at the balance sheet
date and had been applied to re-measure those financial instruments held by the Group which
expose the Group to fair value interest rate risk at the balance sheet date. In respect of the
exposure to cash flow interest rate risk arising from floating rate non-derivative instruments
held by the Group at the balance sheet date, the impact on the net profit and equity is
estimated as an annualised impact on interest expense or income of such a change in interest
rates.
9.4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans denominated
in foreign currencies other than the functional currency, the Group ensures that its net exposure is kept
to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address
short-term imbalances.
(1) As at June 30, 2022, the Group’s exposure to currency risk arising from recognised assets or
liabilities denominated in foreign currencies is presented in the following tables. For presentation
purposes, the amounts of the exposure are shown in Renminbi, translated using the spot rate at the
balance sheet date. Differences resulting from the translation of the financial statements
denominated in foreign currency are excluded.
Unit: Yuan
June 30, 2022 December 31, 2021
Item Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Monetary capital 2,803,336 13,406,984
- USD 417,588 2,802,600 1,984,323 12,640,136
- EUR 105 736 106,216 766,848
Short-term borrowings 103,187,977 98,759,593
- USD 15,375,030 103,187,977 15,490,000 98,759,593
(2) Sensitivity analysis
Assuming all other risk variables remained constant, a 5% strengthening of the Renminbi
against the US dollar and Euro at June 30, 2022 would have impact on the Group’s equity and
net profit by the amount shown below, whose effect is in Renminbi and translated using the
spot rate at the year-end date:
Unit: Yuan
Item Equity Net profit
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
June 30, 2022
USD 5,019,269 5,019,269
EUR -37 -37
Total 5,019,232 5,019,232
December 31, 2021
USD 4,305,973 4,305,973
EUR -38,342 -38,342
Total 4,267,631 4,267,631
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30, 2022
would have had the equal but opposite effect to the amounts shown above, on the basis that all
other variables remained constant.
10. Fair value disclosure
All financial assets and financial liabilities held by the Group are carried at amounts not
materially different from their fair value at June 30, 2022.
11. Related parties and related transactions
11.1 Particulars of the parent company of the Company
Proportion of Proportion of
Name of parent shareholding of the voting powers of
Registration place Business nature Registered capital
company parent company in the parent company
the Company in the Company
Manufacturing
Changyu Group Yantai City 50,000,000 50.40% 50.40%
industry
From January to June 2022, there was no fluctuation in the registered capital of the parent
company and its share in equity interest and voting right.
11.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 8.
11.3 Information about joint ventures and associates of the Company
Other joint ventures and associates that have related party transactions with the Group during
this period or that formed balance when having related party transactions with the Group
during the prior period are as follows:
Name of entity Relationship with the Company
L&M Holdings Joint venture of the Group
Weimeisi Shanghai Associates of the Group
Chengdu Yufeng Associates of the Group
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Guolong Wine Industry Associates of the Group
11.4 Particulars of other related parties
Name of other related parties Relationship between other related parties and the Company
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) A company controlled by the same parent company
Yantai Zhongya Medical Health Wine Co., Ltd. (“Zhongya
A company controlled by the same parent company
Medical”)
Mirefleurs Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”） Subsidiaries of the joint venture
11.5 Related transactions
11.5.1 Related transactions of purchasing and selling goods and providing and receiving
services
List of purchasing goods/receiving services
Unit: Yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
God Horse Packing Purchasing goods 40,568,193 35,161,524
Zhongya Medical Purchasing goods 17,879 164,039
Weimeisi Shanghai Purchasing goods 90,265
List of selling goods/providing services
Unit: Yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Zhongya Medical Selling goods 3,027,005 1,456,492
God Horse Packing Selling goods 31,576 6,538
Chengdu Yufeng Selling goods 850,304 1,639,925
Weimeisi Shanghai Selling goods 305,328
Guolong Wine Industry Selling goods 3,687,055
The price of transactions between the Group and the related parties are based on the
negotiated price.
11.5.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
11.5.3 Leasing with related parties
The Group as a lessor:
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Unit: Yuan
Rental income recognized in Rental income recognized in
Name of the lessee Type of leased assets
this period prior period
God Horse Packing Office building and plant 774,705 774,705
Zhongya Medical Office building 295,238 271,428
The Group as a lessee:
Unit: Yuan
Rental expenses for Variable lease
short-term leases and payments not
Interest expenses on
leases of low-value included in the Right-of-use assets
Rent paid lease liabilities
assets of simplified measurement of increased
assumed
Name of Type of treatment (if lease liabilities (if
the lessor leased assets applicable) applicable)
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
in this in prior in this in prior in this in prior in this in prior in this in prior
period period period period period period period period period period
Office
building,
Changyu
plant, 2,929,000 5,980,362 7,480,362 935,678 597,698 25,502,888
Group
commercial
building
11.5.4 Related guarantee
Nil
11.5.5 Inter-bank borrowing and lending of related parties
Nil
11.5.6 Asset transfer and debt recombination of related parties
Nil
11.5.7 Other related transactions
Unit: Yuan
Related party Item Amount incurred in this period Amount incurred in prior period
Changyu Group Trademark use fee 10,512,100 11,313,578
The price of transactions between the Group and the related parties are based on the
negotiated price.
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
11.6 Accounts receivable and payable of the related parties
11.6.1 Accounts receivable
Unit: Yuan
Ending balance Beginning balance
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts receivable Zhongya Medical 379,160 1,057 287,788 956
Other receivables Zhongya Medical 983,511
Other receivables God Horse Packing 341,880
Advance payment Zhongya Medical 81,940
Other non-current assets Changyu Group 132,977,617 144,120,442
11.6.2 Accounts payable
Unit: Yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 15,739,178 30,184,072
Accounts payable Zhongya Medical 1,907,341
Accounts payable Changyu Group 19,434,600 19,434,600
Accounts payable Chengdu Yufeng 344,464
Liabilities of contracts Weimeisi Shanghai 30,240
Liabilities of contracts Chengdu Yufeng 288,832
Liabilities of contracts Zhongya Medical 653
Liabilities of contracts Guolong Wine Industry 320,850
12. Share-based payment
Nil
13. Commitment and contingency
13.1 Significant commitment
Unit: Yuan
Item Ending balance Beginning balance
Making long-term asset commitments 49,263,700 84,963,700
13.2 Contingency
As of the balance sheet date, the Group didn’t have any contingency to be disclosed.
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14. Matters after balance sheet
14.1 Important non-adjusting events
Nil
14.2 Profit distribution
Unit: Yuan
Profits or dividends to be distributed 308,458,800
Allocated profits or dividends approved to declare upon discussion 308,458,800
14.3 Other statement of events after the balance sheet date
According to the decision of the Shareholders’ Meeting dated May 27, 2022, based on the
issued capital stock of 685,464,000 shares in 2021, the Group allocated RMB 4.5 Yuan in
cash (including tax) for every 10 shares to all shareholders with the total cash dividends of
RMB 308,458,800 Yuan. Such cash dividends were distributed on July 13, 2022 and July 15,
2022 respectively.
15. Other important matters
Nil
16. Notes on major items in financial statements of the parent company
16.1 Other receivable
Unit: Yuan
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 3,153,780
Other receivables 274,900,686 398,072,976
Total 278,054,466 398,072,976
16.1.1 Dividends receivable
Unit: Yuan
Item (or the invested unit) Ending balance Beginning balance
Dividends receivable from subsidiaries 3,153,780
Total 3,153,780
16.1.2 Other receivables
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16.1.2.1 Particulars of other receivables classified by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Accounts receivable from subsidiaries 273,325,297 397,998,281
Accounts receivable from related parties 983,511
Other 591,878 74,695
Total 274,900,686 398,072,976
16.1.2.2 Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 274,880,686
1-2 years
2-3 years
More than 3 years 20,000
Total 274,900,686
16.1.2.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan; and the provision for
bad debts withdrawn or transferred back in this period was RMB 0 Yuan
16.1.2.4 Other accounts receivable actually cancelled after verification in this period
Nil
16.1.2.5 Other accounts receivable collected by the borrower of top 5 units ranked by the
ending balance
Unit: Yuan
Percentage in the
Ending balance
total ending
Unit Nature of fund Ending balance Age of provision for
balance of other
bad debts
accounts receivable
Accounts receivable from
Sales company 230,397,008 Within 1 year 83.8%
subsidiaries
Accounts receivable from
Digital marketing 5,703,640 Within 1 year 2.1%
subsidiaries
Accounts receivable from
Atrio Group 5,543,544 Within 1 year 2.0%
subsidiaries
Accounts receivable from
Castel 1,314,633 Within 1 year 0.5%
subsidiaries
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Percentage in the
Ending balance
total ending
Unit Nature of fund Ending balance Age of provision for
balance of other
bad debts
accounts receivable
Account receivable from related
Zhongya Medical 983,511 Within 1 year 0.4%
parties
Total 243,942,336 88.8%
16.1.2.6 Accounts receivable related to governmental subsidy
Nil
16.1.2.7 Other accounts receivable derecognized due to transfer of financial assets
Nil
16.1.2.8 Other accounts receivable transferred and included in assets and liabilities
Nil
16.2 Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in subsidiaries 7,703,535,027 7,703,535,027 7,593,535,027 7,593,535,027
Investment in associated enterprises
5,859,928 5,859,928 5,886,467 5,886,467
and joint ventures
Total 7,709,394,955 7,709,394,955 7,599,421,494 7,599,421,494
16.2.1 Investment in subsidiaries
Unit: Yuan
Increase and decrease in this period Ending
Beginning Ending
balance of
Invested unit balance (book Increase in Decrease in Provision for balance (book
Others provision for
value) investment investment impairment accrued value)
impairment
Xinjiang Tianzhu 60,000,000 60,000,000
Kylin Packaging 23,176,063 23,176,063
Changyu Chateau 28,968,100 28,968,100
Pioneer International 3,500,000 3,500,000
Ningxia Growing 36,573,247 36,573,247
National Wine 2,000,000 2,000,000
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Increase and decrease in this period Ending
Beginning Ending
balance of
Invested unit balance (book Increase in Decrease in Provision for balance (book
Others provision for
value) investment investment impairment accrued value)
impairment
Icewine Valley 30,440,500 30,440,500
AFIP 588,389,444 588,389,444
Sales Company 7,200,000 7,200,000
Langfang Sales 100,000 100,000
Langfang Castel 19,835,730 19,835,730
Wine Sales 4,500,000 4,500,000
Shanghai Marketing 1,000,000 1,000,000
Beijing Marketing 850,000 850,000
Jingyang Sales 100,000 100,000
Jingyang Wine 900,000 900,000
Ningxia Wine 222,309,388 222,309,388
Ningxia Chateau 453,463,500 453,463,500
Chateau Tinlot 212,039,586 212,039,586
Shihezi Chateau 812,019,770 812,019,770
Chang’an Chateau 803,892,258 803,892,258
R&D Company 3,288,906,445 3,288,906,445
Huanren Wine 22,200,000 22,200,000
Wine Sales Company 5,000,000 5,000,000
Francs Champs 236,025,404 236,025,404
Marques del Atrio 233,142,269 233,142,269
Indomita Wine 274,248,114 274,248,114
Kilikanoon Estate,
129,275,639 129,275,639
Australia
Digital Marketing 1,000,000 1,000,000
Changyu Cultural
92,479,570 92,479,570
Tourism Company
Chateau Koya 110,000,000 110,000,000
Total 7,593,535,027 110,000,000 7,703,535,027
16.2.2 Investment in associates
Unit: Yuan
Invested unit Beginning Increase and decrease in this period Ending Ending
balance balance balance of
(book 141 (book provision
value) value) for
impairment
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Investment
gains and
Other Declared Provision
Decrease losses Other
Increase in comprehensive cash for
in recognized changes Others
investment income dividend impairment
investment under the in equity
adjustment or profit accrued
equity
method
Weimeisi
2,366,811 -43,743 2,323,068
Shanghai
Yantai Santai
Real Estate
3,519,656 17,204 3,536,860
Development
Co., Ltd.
Total 5,886,467 -26,539 5,859,928
16.3 Operating income and operating cost
16.3.1 Details of operating income
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Income
Main business 200,506,811 166,176,180 189,490,544 153,868,830
Other business 29,080,332 26,938,064 16,810,022 15,143,341
Total 229,587,143 193,114,244 206,300,566 169,012,171
Including: Income from contracts 228,517,200 192,410,880 205,254,433 168,378,524
Income from house rents 1,069,943 703,364 1,046,133 633,647
16.3.2 Situation of income from contracts
Unit: Yuan
Contract classification Amount incurred in this period Amount incurred in prior period
Type of merchandise
- Alcoholic beverage 200,506,811 189,490,544
- Others 28,010,389 15,763,889
Classified by the time of merchandise
transfer
- Revenue recognized at a point in time 228,517,200 205,254,433
16.4 Investment income
Unit: Yuan
Amount incurred in Amount incurred in
Item
this period prior period
Income from long-term equity investment by cost method 328,316,580 495,005,832
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Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Amount incurred in Amount incurred in
Item
this period prior period
Income from long-term equity investment by equity method -26,539 -477,762
Investment income from disposal of long-term equity investment
Investment income of the financial assets measured at their fair values and the
variation of which is recorded into the current profits and losses during the
holding period
Investment income gained from disposal of the financial assets measured at
their fair values and the variation of which is recorded into the current profits
and losses
Investment income of held-to-maturity investment during the holding period
Investment income of financial assets held for sale during the holding period
Investment income gained from disposal of financial assets held for sale
Gains generated from the remaining equity remeasured as per fair value after
the loss of control
Total 328,290,041 494,528,070
17. Supplementary materials
17.1 List of non-current profits/losses in this period
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets -8,239,072
Tax return, deduction and exemption approved beyond the authority or
without formal approval document
Governmental subsidy included in the current profits/losses (excluding those
closely related to the enterprise business and enjoyed in accordance with the 23,129,245
unified standard quota or ration of the state)
Payment for use of funds by non-financial enterprises included in the current
profits/losses
Income obtained when the investment cost obtained by the enterprise from
subsidiaries, joint-run business and joint venture is less than the fair value of
the net identifiable assets obtained from the invested units when the
investment is made
Profits/losses on exchange of non-monetary assets
Profits/losses on entrusting other people to make investment or manage assets
Asset impairment provision accrued due to force majeure such as natural
disaster
Profits/losses on debt restructuring
Enterprise reorganization expenses such as staffing expenditure and
integration expenses, etc.
Profits/losses on those beyond the fair value generated from transactions with
unfair transaction price
Current net profits/losses on subsidiaries acquired from a business
143
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
Item Amount Remark
combination under common control from the beginning to the consolidation
date
Profits/losses on contingencies irrelated to the normal business of the
Company
Profits/losses on changes of fair value of tradable financial assets, derivative
financial assets, tradable financial liabilities and derivative financial
liabilities, and investment income from disposal of tradable financial assets,
derivative financial assets, tradable financial liabilities, derivative financial
liabilities and other investment in creditor's rights, excluding effective
hedging operations relevant to the normal business of the Company
Transfer-back of accounts receivable with single impairment test and
provision for impairment of contract assets
Profits/losses on external entrusted loans
Profits/losses on fair value changes of investment real estate with fair value
mode for follow-up measurement
Influence of the one-time adjustment of the current profits/losses in
accordance with tax and accounting laws and regulations on the current
profits/losses
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items 1,105,081
Other profits/losses conforming to the definition of non-current profits/losses
Minus: Influenced amount of income tax 4,584,591
Influenced amount of minority shareholders’ equity -2,739,918
Total 14,150,581 --
17.2 Return on net assets and earnings per share
Earnings per share
Weighted average return on
Profit incurred in this period Basic EPS Diluted EPS
net assets
(Yuan/Share) (Yuan/Share)
Net profit attributable to common
3.39% 0.52 0.52
shareholders of the Company
Net profit attributable to common
shareholders of the Company deducting 3.26% 0.50 0.50
non-incidental profits/losses
17.3 Accounting data difference under domestic and foreign accounting standard
17.3.1 Net profits & net assets difference disclosed in the financial report according to
the international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits Net assets
Amount incurred in Amount incurred in prior
Ending balance Beginning balance
this period period
144
Yantai Changyu Pioneer Wine Co., Ltd. 2022 Semi-annual Report
In accordance with the
358,459,603 371,821,819 10,491,487,490 10,447,884,183
Chinese accounting standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 358,459,603 371,821,819 10,491,487,490 10,447,884,183
standard
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
August 26, 2022
145
